Stimulus proposal to PM on May 29

“The proposed stimulus package will emphasise farmers, SMEs and tourism-related businesses that have been affected,” permanent secretary Rungson Sriworasat said yesterday.

The prices of several agricultural products remain low. Many farmers are hurting and purchasing power is flagging.

Discussions have been held with the private sector, particularly financial institutions, to find ways to help affected businesses, including financial assistance for processed agricultural products.

“I have talked to state-run banks and commercial banks, which are ready to help through loan extensions for SMEs and farmers. And relaxation of loan rates is being discussed. How can the government help?” he said.

Tourism is a major industry with many businesses depending on it, Rungson noted.

“We are also thinking about more measures to promote local tourism, given the numerous related businesses. This could also spur domestic spending,” he said.

One such measure could be extra tax deductions.

The Revenue Department has also been assigned to find methods to boost consumption, such as by encouraging shops to issue receipts to compete for prizes.

The receipt measure has already been tried to help drive up consumption to a certain level by directly persuading businesses to enter the formal tax system.

However, most receipts came from large companies, not the targeted small and medium-sized enterprises.

“We have studied Taiwan’s system, which uses the numbers on receipts coming from small and large shops to compete for prizes," Rungson said.