Korn urges stronger stimulus to keep the economy afloat

Kla Party leader Korn Chatikavanij, a former finance minister, yesterday called on the government to adopt stronger economic stimulus packages to put more cash in consumers’ pockets, including retroactively lowering income tax rates for the past tax year.

He said the government’s current package aimed at stimulating the economy, which has been badly affected by the Covid-19 outbreak, was not enough. Mr Korn said his party, which he still refers to as a political group, has come up with seven measures that he said will keep the economy afloat.

One of the measures proposed was to lower income tax rates for the 2019 fiscal year, which will be filed this year, to 16% for those in the 20% bracket and to 8% for those in the 10% bracket, he said.

This measure will only cost the government about 75 million baht, which Mr Korn said it should be able to shoulder given that the tax break will give salarymen more buying power.

Another measure, Mr Korn said, will be to consider including small entrepreneurs and street vendors into its soft loan programme, which at present are only aimed those who have taken bank loans. Without sufficient financial resources during this time of crisis, these entrepreneurs and vendors will end up turning to loan sharks, he warned.

Mr Korn also encouraged the government to review its decision to suspend companies’ and employees’ contributions to the Social Security Fund. Instead of having people lose their benefits due to this payment suspension, the government should shoulder the cost of monthly payments for both companies and employees.

This way, employees will automatically have an extra 750 baht left in their pockets every month, he said.