BANGKOK, Thailand – The Cabinet has accelerated relief measures for flood victims, focusing on easing financial burdens, restoring livelihoods, and improving liquidity for individuals and businesses. Prime Minister Paetongtarn Shinawatra directed the Cabinet on October 15 to implement these measures swiftly, targeting communities nationwide. The relief package includes tax exemptions, rent waivers, and expanded loan programs to provide immediate assistance and long-term recovery support.
Under the “Tax Reduction, Expense Reduction, and Increased Loans for Home Restoration” program, individuals and companies will be exempt from paying income and corporate taxes on compensation received from the government and insurance payouts related to flood damages. Additionally, customs duties will be waived for imported goods donated to flood victims. Rent reductions are being offered for those leasing land from the Treasury Department, including one-year rent waivers for partially damaged homes and two-year waivers for homes that have been completely destroyed. Farmers will receive a one-year rent exemption, and businesses can apply for waivers on delayed rent payments.
To improve liquidity, the government has introduced several low-interest loan schemes. A 50 billion baht soft loan program is available for SMEs impacted by the floods, offering loans of up to 40 million baht per borrower at interest rates capped at 3.5% for two years. The Small Industry Credit Guarantee Corporation is also providing a 1 billion baht fund under the “SMEs No One Left Behind” program to guarantee loans for affected businesses. Additional debt relief from government banks, such as the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives, includes suspensions of principal and interest payments, extended repayment periods, and waivers on interest penalties.
Homeowners will also receive financial support, with restoration loans of up to 500,000 baht available to repair homes and equipment. These loans feature reduced interest rates and repayment terms of up to 15 years. The Government Housing Bank is offering loan reductions and restructuring options for non-performing loans, while the Islamic Bank of Thailand and SME Development Bank have suspended principal payments for up to six months. The Export-Import Bank of Thailand has also extended promissory note maturities for affected businesses by up to 180 days.
Additional measures under consideration include tax deductions for home repair expenses and customs duty exemptions on machinery and equipment imported to replace flood-damaged items. The Cabinet is also exploring further soft loan programs to aid in the economic recovery, particularly in the tourism and service sectors.
The prime minister has called for compensation payments to be completed by the end of October. The Ministry of the Interior is distributing funds, including 9,000 baht per household for flood-affected areas and 10,000 baht for mud-cleaning costs. Water and electricity bill exemptions for flood-affected homes are expected to be finalized in the coming days. (NNT)
