Thailand
Thailand: State advised to address the rising cost of living
Retailers are calling on the government to speed up budget disbursement and state spending, cap energy prices for as long as possible as well as continue consumption stimulus measures to boost consumer spending.
According to Yol Phokasub, president of the Thai Retailers Association, given the spate of risk factors, the government needs to prioritise measures that address the rising cost of living.
The retailers proposed the government accelerate budget disbursement and state spending worth an estimated 3.1 trillion baht into the economy as fast as possible while maintaining the energy prices as long as possible through affordable mechanisms.
Although the government has cut the excise tax on diesel by 3 baht per litre, from the current 5.99 baht, for three months to help ease the impact of high energy prices on the cost of transport and consumer goods, such measures are unlikely to be sufficient, according to the association’s statement, proposing responsible agencies roll out additional measures such as transportation cost control.
Transport costs now represent about 8-10% of a product’s production costs.
According to Mr Yol, the association also urged the government to continue measures to stimulate people’s spending power, especially through “Khon La Khrueng” co-payment subsidy scheme and the “Shop Dee Mee Khuen” tax rebate scheme.
The association called for an extension of Shop Dee Mee Khuen, which offers a tax deduction for individual taxpayers when purchasing certain goods or services, but asked the government to raise the tax deduction to 100,000 baht from 30,000 baht now.
Mr Yol said the two programmes, once extended, will help boost local consumption and increase income for local entrepreneurs and small and medium-sized enterprises (SMEs).
He said retailers in the association and suppliers themselves have agreed to help maintain the prices of essential consumer products until the end of the first quarter of this year. Any further price retention will be evaluated on a quarterly basis.
In addition, Mr Yol said the association pledged to provide sufficient supplies of consumer products to consumers and help rehabilitate SMEs, especially providing them with a source of funds.
The association also vows to help keep 1.1 million people employed in the retail sector.
Source: https://www.bangkokpost.com/business/2272299/state-advised-to-address-the-rising-cost-of-living