Bt5-6b expected to be circulated during Thailand's year-end shopping stimulus

BANGKOK, November 7 (TNA) - The Kasikorn Research Center (KRC) forecasts that up to 5-6 billion baht should be circulated in the Thai economy during this year's end shopping stimulus scheme, to be launched by the government during November 11-December 3. KRC Managing Director Chao Kengchon told journalists on Tuesday that the year end's shopping stimulus program is aimed mainly to boost people's purchasing power and domestic consumption, as well as sales and revenues of small and medium-sized enterprises (SMEs), including those in the local farm sector. Chao noted that the Thai economy has been generally recovering well, but the year end's shopping spree scheme, which has been implemented by the government since late 2015, is emphasized on stimulating some parts of the national economy. Projecting that up to 5-6 billion baht should be circulated during this year end's shopping stimulus program, based on the government's condition that shoppers will each enjoy a personal income tax deduction for their shopping bills of 15,000 baht, covering their air tickets, the KRC managing director admitted that the shopping spree scheme could cause a short-term slowdown of domestic consumption in early next year. Chen Namchaisiri, Chairman of the Federation of Thai Industries (FTI), also viewed, meanwhile, that the year end's shopping stimulus program could cause a slowdown in domestic consumption consequently, proposing that only a short period of such the program should be better than a longer one. However, Phumin Harinsut, Vice Chairman of Thai Chamber of Commerce, and Pridi Daochai, President of the Thai Bankers Association and Kasikornbank, voiced their support for the year end's shopping stimulus program, acknowledging that the program should also stimulate the year-end domestic tourism and the national economy, as well as boost the government's value-added tax revenue. (TNA)