Briefs

The Cabinet yesterday approved the draft bill on petroleum, which allows for three types of petroleum exploration and production in Thailand.
 Government Spokesman Sansern Kaewkamnerd said the previous version of the bill, which was first launched back in 1971, had allowed only one type of exploration and production.
Following the Cabinet’s approval, the legal draft will now be forwarded to the National Legislative Assembly.
Deputy Prime Minister Wissanu Krea-ngam said that related laws should be prepared by ministries during the three-month NLA consideration of the draft bill.
The Cabinet also gave the green light to a legal draft on petroleum income proposed by the Finance Ministry.
The draft fixes certain royalty fees.
 
1-MONTH CONSIDERATION PERIOD URGED FOR TAX ON HIGH-SUGAR DRINKS

The Finance Ministry is requesting a one-month period for the Excise Department and the private sector to study the pros and cons of a specific excise duty on beverages with high sugar content.
The aim of introducing such a measure would be to discourage excessive consumption of sweet drinks, which contributes to the growing problem of diabetes among Thais, according to the ministry’s permanent secretary, Somchai Sujjapongse.
However, there are also other means to achieve the National Reform Steering Committee’s goal of reducing sugar intake by Thais, such as setting limits on sugar content in foodstuffs and beverages, for which the Industry Ministry would have to take a lead role in persuading food and beverage manufacturers to cooperate in, while making the necessary adjustments could take five years, he said.
“In deciding to impose an excise tax on beverages, we must also consider whether it is fair to tax just the beverage manufacturer, as sugar is only a small portion of a beverage product, 12-13 per cent in beverages, 13-14 per cent in milk, and 20-30 per cent in foods.
“Milk and Thai desserts [considered One Tambon One Product items] have considerable sugar content, but are not targets of excise tax,” Somchai added.
 
MOODY’S ASIAN LIQUIDITY STRESS INDEX FALLS IN MAY

Moody’s Investors Service has reported that its Asian Liquidity Stress Index (Asian LSI) fell to 33.6 per cent in May, from 34.2 per cent the previous month.
“The reading in May is lower than the record high of 37 per cent reached in December 2008 amid the global financial crisis, but the result is still higher than the trailing 12-month average of 29.3 per cent,” said Brian Grieser, a Moody’s vice president and senior analyst.
“The Asian LSI remains at elevated levels due to weak corporate liquidity profiles across Asia,” he said. “In particular, the property, oil and gas, and metals and mining sectors account for over 60 per cent of the SGL-4 scores.”
The total number of Moody’s-rated high-yield companies with SGL-4 scores fell to 39 from 41 in May from April, while the net number of Moody’s-rated high-yield companies fell to 116 from 120.
The improvement in the Asian LSI during May was largely driven by high withdrawal activity, as opposed to a fundamental improvement in underlying liquidity, he added.