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AFG looks at the auto FTA’s
Graeme
Sheard, KPMG.
Dr. Iain Corness
The Automotive Focus Group (AFG) invited Graeme Sheard
from KPMG to address the group at the latest meeting last week, held in the
Holiday Inn.
The buzz words for KPMG are “cutting through complexity”,
and corporate taxation is certainly complex, though Graeme Sheard did manage
to show where the tunnel was, and the faint flicker of light at the end of
it.
With KPMG being a very large conglomerate, they have been
able to carry out annual surveys and then extrapolate the results into
trends. For the automotive industry, the prediction is that it will be quite
different by the next decade with mobility solutions to counter traffic
problems - perhaps you will not need to ‘own’ a car, but just pick up and
drop off in the cities. There will be specific vehicles for specific
environments - the advent of ‘city cars’ is here already, but will increase.
‘Green’ vehicles will increase - electric, hybrid and fuel cell. All these
will bring about major changes in the supply chain, and bring in new
industry participants, particularly in the battery/electric motors area.
Graeme, with his crystal ball, also predicted that as the
customs revenue falls with Free Trade Agreements (FTA’s), there will be
other taxes applied to counteract the government shortfall. The most obvious
one is VAT, and predictions of an increase from 7 to 10 percent were made.
He made mention of some other FTA’s which are currently
being hammered out, including India, the European Union, ASEAN and Peru.
Graeme Sheard did ask if any of the AFG members were trading with Peru, but
at this stage the answer was in the negative!
The veritable minefield in the regulations of working
within an FTA were shown, with advice being given to ensure there is an
indemnification clause in any agreements, as penalties can be very high.
He also suggested that for some members of the AFG, the
penalties of importing under an FTA can be such that it may even be better
just to import at the domestic rate of tax.
Altogether, this was one of the better addresses that the
AFG has provided for its members.
James Beeson, the president of the AFG mentioned that
there has been a change in direction, as regarding speakers. The AFG
committee has determined that if they have the subject matter or topic, then
it is easier to identify and find appropriate speakers to talk, rather than
find the speaker and then find a topic. It is also expected that this method
should also expand the network of the AFG, as it will be necessary to find
some speakers outside of their current network.
Those who are interested in contacting the AFG can do so through
[email protected].
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THAI President receives Award
for “Best Executive 2010
Thailand” from Asiamoney
Piyasvasti
Amranand (left), THAI president, receives his award from Richard Morrow, editor
of Asiamoney.
Piyasvasti Amranand, president of Thai Airways International
Public Company Limited (THAI), last week was the recipient of the “Best
Executive 2010 Thailand” Award at the Asiamoney award dinner held at the Four
Season’s Hotel in Hong Kong.
The “Best Executive 2010 Thailand” was awarded in recognition
for Amranand’s leadership and the comprehensive restructuring of the company
over the past year in office. Amranand played a pivotal role in the company’s
turnaround, through rapid improvements in the cost structure and repositioning
itself in the market. In the January 2011 issue of Asiamoney magazine, it
reported that analysts were more bullish about Thai Airways International under
the leadership of the THAI president.
Presenting the award was Richard Morrow, editor of Asiamoney
at the award dinner at the Four Season’s Hotel in Hong Kong on February 24, with
approximately 300 guests and awardees in attendance. Categories in the Asiamoney
awards include Brokers Poll, Corporate Governance Poll, Deals of the Year, Best
Managed Companies, and Country Awards.
Asiamoney is published 11 times per year in print and digital
format. The publication is circulated throughout Asia to subscribed readership.
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Thailand to retain tourism-friendly initiatives
Thailand’s Ministry of Tourism and Sports plans to extend
or reintroduce some tourism stimulus policies launched over the last two
years.
Permanent Secretary Sombat Kuruphan said the ministry is
currently debating which of the seven policies originally launched to
counter the multiple tourism crises in the country are worth renewing.
Policies still active include the exemption of tourist
visa fees for some nationalities, including Indians and Chinese, which will
cease on March 31.
Policies that have already concluded include the soft
loan scheme for tourism-related operators, travel insurance coverage for
foreign visitors in case of riots and the waiver of hotel operating fees at
80 baht per room per year.
Meanwhile, Sombat said the ministry would press ahead
with construction of the new government-funded convention and exhibition
centre in Chiang Mai, scheduled for completion by end of this year. (TTG
Asia)
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