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56901
Wed, 04/22/2009 - 20:09
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https://oananews.org//node/56901
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Tax incentives, rebates proposed to boost Thai exports
BANGKOK, April 22 (TNA) - Commerce Minister Pornthiva Nakasai on Wednesday asked the government to provide tax incentives, including rebates, to importers of raw materials for goods manufactured for export and exporters intended to boost Thailand’s exports during the balance of 2009, after exports fared poorly during the first quarter due to the global economic slump and a sluggish domestic economy.
Mrs. Pornthiva said she discussed the issue with Prime Minister Abhisit Vejjajiva, Finance Minister Korn Chatikavanij and Industry Minister Charnchai Chairungrueng after Tuesday’s Cabinet meeting.
Under the terms of the request, the Ministry of Finance is urged to reduce import tariffs between 3-5 per cent for importers of raw materials used in manufacturing exports from May to December 2009, Mrs. Pornthiva said.
Also, the government has been asked to provide for tax rebates, especially for marketing, which would help every industry, she said.
The two measures, if implemented, will cost the government losses of Bt92-128 billion but will help boost the country’s exports in value by another Bt960 billion, or 16 per cent of projected total exports, Mrs. Pornthiva said.
She said if the proposal is rejected, Thailand’s exports this year will contract even more than 15 per cent. And if it is approved, the value of exports will rise between 0-3 per cent.
The proposal is being studied by the Ministry of Finance and will be considered during an economic ministers meeting next week, she said.
Thailand’s exports during the first quarter this year retreated in every sector and the country earned about US$33.79 billion, down 20.55 per cent from the corresponding period of 2008, according to Siripol Yodmuangcharoen, Permanent Secretary for Commerce.
Imports during the first quarter were valued at $26.73 billion, a decrease of 37.6 per cent from the same period last year, Mr. Siripol said.
Exports of vehicles, a major industry, fared badly during the first quarter this year.
According to Surapong Paisitpatnapong, spokesman for the Federation of Thai Industries (FTI) Automotive Industry Club, the country shipped 107,774 cars, down 33.4 per cent from the corresponding period of 2008.
A total of 356,292 motorcycles were exported during the period, a decline of 16.8 per cent from the first quarter last year, said Mr. Surapong. The sharp drop in exports of vehicles was attributed to the persisting global financial crisis and poor consumer confidence, he said. (TNA)
Mrs. Pornthiva said she discussed the issue with Prime Minister Abhisit Vejjajiva, Finance Minister Korn Chatikavanij and Industry Minister Charnchai Chairungrueng after Tuesday’s Cabinet meeting.
Under the terms of the request, the Ministry of Finance is urged to reduce import tariffs between 3-5 per cent for importers of raw materials used in manufacturing exports from May to December 2009, Mrs. Pornthiva said.
Also, the government has been asked to provide for tax rebates, especially for marketing, which would help every industry, she said.
The two measures, if implemented, will cost the government losses of Bt92-128 billion but will help boost the country’s exports in value by another Bt960 billion, or 16 per cent of projected total exports, Mrs. Pornthiva said.
She said if the proposal is rejected, Thailand’s exports this year will contract even more than 15 per cent. And if it is approved, the value of exports will rise between 0-3 per cent.
The proposal is being studied by the Ministry of Finance and will be considered during an economic ministers meeting next week, she said.
Thailand’s exports during the first quarter this year retreated in every sector and the country earned about US$33.79 billion, down 20.55 per cent from the corresponding period of 2008, according to Siripol Yodmuangcharoen, Permanent Secretary for Commerce.
Imports during the first quarter were valued at $26.73 billion, a decrease of 37.6 per cent from the same period last year, Mr. Siripol said.
Exports of vehicles, a major industry, fared badly during the first quarter this year.
According to Surapong Paisitpatnapong, spokesman for the Federation of Thai Industries (FTI) Automotive Industry Club, the country shipped 107,774 cars, down 33.4 per cent from the corresponding period of 2008.
A total of 356,292 motorcycles were exported during the period, a decline of 16.8 per cent from the first quarter last year, said Mr. Surapong. The sharp drop in exports of vehicles was attributed to the persisting global financial crisis and poor consumer confidence, he said. (TNA)
