The Thai Finance Ministry is proposing a stimulus package of about THB 20 billion (USD 635 million) to aid its slumping economic growth. According to the Finance Minister launching the stimulus measures are paramount as GDP growth is predicted to be hovering just above 3% in the first half of this year due to the US-China trade quarrel. In the last quarter of 2018, growth was at 3.7%.
As Thailand is awaiting the formation of the new government, the current Finance Minister is proposing such measures to prevent the economy from plummeting as the new government comes in.
The seven measures included in the package are aimed at boosting consumption, domestic tourism and helping low-income earners. Some measures include a tax break for domestic tourism spending up to THB 15,000 (USD 476), tax reductions on buying uniforms and other school supplies and a special mortgage to support homebuyers.
Other support initiatives are geared towards student loan fund privileges to build up human capital for targeted industries and allowing operators to claim investment in point-of-sale terminals at 1.5 – 2 times as an expense to deduct from income subject to taxes.
The central bank’s forecast of 3.8% GDP growth in 2019 assumes the government will be installed by June. A delay could have serious consequences for public sector projects, private sector investments and the implementation of the national budget.
(Sources: The Bangkok Post; Investing.com; Chiang Rai Times)