Cabinet approves cash-strapped PEA's finance

The PEA faces a cash flow crunch from subsidised services under the government’s stimulus packages and the unpaid bills from state agencies amounting to Bt3.4 billion. It also needs to finance electricity projects including those in Koh Samui and Surat Thani.

The Cabinet also approved another one-month extension for the diesel excise tax waiver to January 31 and the Asean-India Vision Statement.

Diesel fuel in Bangkok retails at Bt29.79 a litre.

The Asean-India Vision Statement was drafted to upgrade ties between the two sides in trade and investment with the target of achieving two-way trade of US$100 billion (approximately Bt3 trillion at current rates) in 2015.

The statement will focus on encouraging the establishment of the Asean Economic Community. The two sides also agreed to set up the Asean-India Centre to work on action plans.

India also urged Asean to finalise the negotiations on trade in services and investment to accelerate the setting up of a free-trade agreement between Asean and India.

The first car buyers’ scheme would cost taxpayers about Bt70 billion, the Finance Ministry said.

Deputy Finance Minister Tanusak Lek-uthai said new car owners had so far filed for some Bt60 billion in tax rebates for 910,000 vehicles. About 30,000 individuals who have owned their vehicle for over a year have been granted partial rebates worth about Bt2 billion.

"The Excise Department is receiving applications for 35,000 vehicles per day nationwide. It’s highly likely that the total will pass one million," he said.

Those registering their vehicles for the scheme before the end of this year are entitled to the rebate.

Despite the huge loss in excise income, the government should be compensated by higher value-added and corporate taxes as a result of the growth in vehicle sales.

The government is calculating how much it will earn from these two items, he added.