The government is keen to repay consumption taxes through smartcards
The effort is to raise disposable income, doling it out through welfare smartcards
Deputy
Prime Minister Somkid Jatusripitak has required the Revenue Department seek measures to alleviate the consumption tax of those in poverty, helping to repay the group as part of government efforts to boost their income.
Those with low income are taxed when they purchase goods and services, and he asked the department to consider how to reduce their tax burden.
Alleviating the tax burden will create more disposable income and strengthen their purchasing power, he said after meeting with the Finance Ministry yesterday.
At the meeting he outlined two priorities — beefing up the country’s competitiveness and narrowing economy disparity.
Even though the country’s economy expanded at the fastest pace in 20 quarters at 4.8% year-on-year in the first quarter, the recovery remains uneven, with low-income folks struggling through hardship. Addressing the root of poverty is a government priority and it has provided both financial and work training support to those who are at the bottom end of the income scale through the government’s welfare and subsidy scheme.
Under the scheme, the government is giving a monthly living allowance of 200-300 baht to 11.4 million people earning no more than 100,000 baht a year to buy staple goods at Thong Fah Pracha Rat shops and those signed up for participation in job training receive additional living allowance of 100200 baht a month.
Ekniti Nitithanprapas, director-general of the Revenue Department, said it will consider repaying consumption tax to the poor through the government’s welfare smartcards to comply with Mr Somkid’s assignment, but further assessment on the details will need to be made with the Comptroller-General’s Department before it is implemented.
He has delegated revenue officials to consider which category of consumption tax welfare recipients will receive money back and how much.
However, the payback must not exceed their monthly expenses and it will not be considered a tax refund as it will be financed by the state’s annual budget, he said.
“We will not give tax refunds, but rather repay money through the welfare smartcards. We must consider what are the items they spend the most on to provide assistance.
I will discuss the issue with the Comptroller-General’s Department next week,” he said.
In related news, Mr Somkid ordered Mr Ekniti to sharpen Thai Airways International Plc’s (THAI) competitive edge and seek a strategy to handle its low-cost airline subsidiaries.