BANGKOK, Oct 9 – As the global economy remains in doldrums and Thailand’s exports have expanded at only a slow pace, contracting 7 per cent in August, the Finance Ministry has reduced this year’s growth projection to 1.7 per cent from the 2 per cent forecast earlier, Permanent Secretary for Finance Rungson Sriworasat said today.
Speaking at a seminar, Mr Rungson said the ministry is trying to stimulate the country’s economy by injecting more money into the system, especially through disbursements by government agencies for at least 50 per cent the amount budgeted for the first quarter of Fiscal 2015, which October 1.
In an attempt to kick-start the economy, the Board of Investment (BoI) approved more than 18 investment projects with a combined investment value of over Bt300 billion, he said.
Development projects will focus on special economic zones in five border provinces, aimed at boosting state revenue, said Mr Rungson.
He reiterated that the government would go ahead with its plan to collect inheritance tax, designed for reducing social divisiveness, while personal income and corporate taxes would be adjusted.
On a government plan to raise the value-added tax (VAT) which now stands at 7 per cent, Mr Rungson said concerned officials are calculating how much the VAT should rise as it depends on how much money is needed for national development
On the other hand, state enterprises are believed to have potential to generate more revenue as their combined revenue during Fiscal 2013 totaled Bt30-40 billion while the state collected only Bt300 billion, much lower than projected, he said.
Mr Rungson said the Treasury Department has been assigned to appraise a new round of land prices nationwide in order to enable the state to collect more money from deserted land.
So far the department has appraised land prices for seven million plots out of 30 million plots, he said, adding that a private firm has been hired to help in the land appraisal scheme which has been delayed.
