Estimates slashed after slow start

Due to a slow start, the government-sponsored National Savings Fund (NSF) has slashed its estimate of memberships this year to 500,000 from 1 million.

“We may open the office a bit later than planned, as we have to make sure we can start operating it smoothly,” Somchai Sujjapongse, director-general of the Fiscal Policy Office, said last week.

And the Finance Ministry will review its proposed real estate tax after tax officials could not gather support for it from the Yingluck Shinawatra government, he said.

The NSF may not be able to open for memberships on May 8, as required by the law passed by the former Abhisit Vejjajiva government, he said.

The computer system is not yet ready, the recruitment of the secretary-general of the NSF is taking time and the current government has allocated only Bt225 million, which is not enough to run the NSF, he said. The ministry may later ask for more funding from the Cabinet.

Krung Thai Bank’s branches would start acting as contact points for member applications nationwide, to be followed in late May by the Bank for Agriculture and Agricultural Cooperatives, Gov-ernment Savings Bank and Thai-land Post.

Later, people can apply to join the NSF at convenience stores, village funds or community banks.

The NSF has been set up for people who are not covered by the Social Security Fund, Government Pension Fund or private provident funds to build up a nest egg for retirement, with the government matching the contributions from members.

There are four candidates for secretary-general. The winner is expected to be selected shortly.
The head office of the fund will be temporarily located on the 22nd floor of the Export-Import Bank building on Phaholyothin Road.

Somchai also said his office would review the draft real estate tax bill after Finance Minister Kittiratt Na-Ranong said it was not a government priority.

“The office will still push for introducing this tax and we will consult with all parties and explain its necessity to the public,” he said.

The former Democrat-led government had approved the bill but failed to push it through Parlia-ment. The tax would not only raise government revenue but also help curb the widening gap between rich and poor.