Revenue Department proposes another year of 7% VAT

The Revenue Department has affirmed that it earlier advised the Finance Ministry to extend the 7 percent value-added tax (VAT) for another year to ease the burden on consumers during the current economic slowdown, according to the agency chief.
Director General Sutthichai Sungkamanee said there was no discussion with caretaker Prime Minister Yingluck Shinawatra on a plan to increase the VAT to 10 percent at the meeting on Wednesday as reported by some media.
Sutthichai said the Revenue Department earlier advised the Finance Ministry to keep the VAT rate unchanged for another year.
The two-year extension of the VAT at 7 percent was due to expire on September 30, he said.
The extension needs the approval of both the cabinet and the Election Commission (EC), he added. (MCOT)

Working class debt surges to six-year peak

The University of the Thai Chamber of Commerce (UTCC) says majority of Thai workers - 93 percent - are trapped in a cycle of debt, the biggest leap in five years.
UTCC Economic and Business Research Centre Director Thanawat Polvichai said the survey conducted among those with monthly incomes lower than Bt15,000 shows that the average debt at 93.7 percent of Thailand’s working-class families amounts to some Bt106,216, while average monthly debt repayment is around Bt6,600.
Some 56.1 percent are trapped in a cycle of informal debt, with monthly repayments of Bt7,400. The figure represents a six year peak. The remaining 43.9 percent pay about Bt5,450 a month to the banks and other financial institutions. The poll also showed that only 23.9 percent are saving any income, the lowest figure in six years.
Meanwhile, 74.3 percent are suffering account imbalances as their income cannot support the rising price of goods and fuel as well as high interest rates.
Many are in unstable careers, with 28.9 percent at risk of losing their jobs. They said they were concerned about volatile food prices and layoffs since the Thai economy is likely to grow less than 2.5 percent this year.
The working class urges the government to raise the daily minimum wage form Bt300 to Bt388 to cover basic living expenses. Minimum daily income should increase to Bt498 in the next three years and Bt579 in the next five years to cope with the rising cost of living.
The caretaker government is rated below last year for its labor policy at only 5.1. They have been urged to put an end on prolonged political conflict that damaging the economy.
Meanwhile, consumer spending on May 1, Thailand’s National Labor Day, is expected to increase 2.3 percent to almost Bt2 billion from some Bt1.9 million last year. (MCOT)

BECL to open Asoke- Srinagarind expressway today

Bangkok Expressway Plc (BECL) is opening a new expressway route from Asoke to Srinagarind today.
BECL managing director Payao Marittanaporn spoke of progress on the Sri Rat Expressway connecting route (from Asoke to Srinagarind) to Chaturathit Road.
She said the work is 90-percent complete and is expected to open for service on May 2.
The new route will help ease outbound traffic during eastern Bangkok’s rush hours and facilitate those commuting from Sri Ayutthaya Road to Ratchaprarop Road, Victory Monument, Petchaburi Road, Din Daeng Road, and Makkasan passing through Chaturathit Road and continuing to the Sri Rat Expressway (from Asoke to Srinagarind), reaching Suvarnabhumi International Airport (Motorway) or Chalongrat Expressway to reach Ladprao Road and Ramindra Road.
Payao said around 12,000 vehicles are expected to use the new route with a projected revenue at Bt7.5 million/month. The project’s investment is over Bt250 million. (MCOT)