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Thailand: Retail, Wholesale Business Act ready to be considered
A draft of the long-delayed Retail and Wholesale Business Act is set to go before the cabinet this month, says Commerce Minister Apiradi Tantraporn.
The Commerce Ministry is due to submit the draft of the new law governing retail and wholesale business, which was prepared by the National Legislative Assembly (NLA), for the cabinet’s approval.
The draft will take into account the current retail and wholesale business structure, the market’s current conditions and directives in tackling key problems.
Mrs Apiradi said the Commerce Ministry believes it is imperative for Thailand to have a new law governing the retail and wholesale business and agreed in principle that Thailand should have clear-cut measures to promote and protect small-scale retailers.
Santichai Santawanpas, a member of the NLA’s subcommittee on commerce, said the NLA likewise views it as essential that retail and wholesale business have a specific law governing it.
He added that the new law should cover clear criteria, requirements, appropriate locations and a corporate income tax payment scheme for new modern trade outlets that request operating licences or branch expansion.
“One of the key points is the requirement that modern trade outlets register separately as juristic persons to pay their fair share of taxes,” said Mr Santichai. “More importantly, the law should be strictly enforced if unfair trade practices or market domination is discovered.”
Mr Santichai said Thailand should also expedite a law governing franchise quality.
The Commerce Ministry has unsuccessfully tried to amend the Retail and Wholesale Business Act four times since 2001. Those failures have opened loopholes for modern trade operators to expand their branches nationwide, with virtually no restrictions on size or location.
The Commerce Ministry said between 2001 and 2014, the number of modern trade branches rose to 16,629 from 2,589, with an average growth rate of 26% a year.
The proliferation of modern trade outlets has led them to have much higher bargaining power with suppliers, drastically affecting small-scale retail shops.
Source: http://www.bangkokpost.com/business/news/1198157/retail-wholesale-business-act-ready-to-be-considered