Premier promises recovery of economy in fourth quarter
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The economy will recover next quarter, said Prime Minister General Prayuth Chan-ocha, who indicated that a planned inheritance tax would have no negative impact on low-income earners.
After the first meeting of his Cabinet yesterday, Prayuth expressed confidence in the country’s economic recovery in the final quarter of the year.
He said this was not up to the government or the prime minister only, but would be driven by the public sector, the private sector and the people.
A joint committee of the public and private sectors is discussing what is required. If more subsidies are needed, that will mean more borrowing and, in the end, such borrowing will only cover debt repayments with nothing left for national administration, he warned.
To make the nation more competitive, the government will focus on export products that are innovative, are technologically advanced, and add value, Prayuth said.
Price mechanisms that depend on external factors for agricultural products such as rice, rubber and tapioca may need to be explained to people, he said, citing agreements under the World Trade Organisation.
Given Thailand’s rising wages, new brands and innovation are required to compete with other countries.
On the proposed inheritance tax, Prayuth said this was still in the review process, but low-income earners would be exempted from it. The draft is being reviewed for fairness, he said, noting that the richer would pay a higher tax, and the poorer would pay less.
The concentration of wealth and widespread poverty were difficult to solve, as this situation had developed over a long period and several governments were unable to find solutions, Prayuth said, adding that this government would do its best as well.
He said Thailand was facing problems moving into a digital-based economy because of delayed investments.
Prayuth insisted that martial law, which was not discussed at the Cabinet meeting, would not affect Thailand’s internal economy, but there could be some impacts on foreigners, so the effects on tourism needed to be assessed.
He added that only some articles of the martial law had actually been employed.
