Thailand
Thailand: FTI readies 9-point relief proposal for firms
The Federation of Thai Industries (FTI) this Wednesday will ask the Center for Economic Situation Administration to approve its nine-point proposal aimed at using taxation tools and other relief packages to help businesses and employees get through the crisis.
Five of the nine measures involve tax reduction or tax breaks for businesses afflicted by the pandemic and those who help the government increase the country’s cash flow by stimulating tourism, according to the proposal recently raised for discussion with the National Economic and Social Development Council.
Authorities should consider waving corporate income tax for small and medium-sized enterprises for the 2020 to 2022 tax years, the FTI said. SMEs are required to declare their revenues through electronic filing.
Companies can use expenses, including fees for factory operation permissions and purchase of equipment for R&D, to deduct from taxes.
They can also ask for similar deductions if they hold outings or training for employees upcountry to support domestic tourism.
Tax benefits under the Board of Investment should be extended for another two years. Fees caused by failure to file a mid-year tax declaration, based on profits made by companies, should also be waived, the FTI said.
“What we suggest is usually adjusted at the [centre’s] meeting,” FTI chairman Supant Mongkolsuthree told the Bangkok Post, acknowledging that the government is unlikely to push ahead with the original version proposed by the private sector.
The sixth measure is a call for the Bank of Thailand to extend the debt moratorium scheme, which will end next month, for a further two years.
Businesses would be allowed to pay only 10% of interest from November this year to April next year.
FTI believes the measure can help commercial banks, which grant loans to businesses, better manage the risks of non-performing loans.
“If businesses can manage to repay some debts, they should not be considered NPLs,” Mr Supant said.
The seventh measure is to reduce fees for companies dealing with land transfer and mortgage issues.
“The FTI is planning to ask the Industry Ministry to co-organise the ‘Made in Thailand Expo’ to promote Thai products,” Mr Supant said.
The last measure is for employees under the Social Security Fund, who should be allowed to claim 62% of their daily wages if they are left unemployed due to the outbreak until Dec 31 this year, the FTI said.
Source: https://www.bangkokpost.com/business/1988835/fti-readies-9-point-relief-proposal-for-firms