Cabinet to consider measures to ease employers' burden

If all four measures are adopted, they should benefit 5.3 million workers, including the 1.7 million in the SME sector, once the flat rate is put into effect February, he said.

One of the proposals is to waive tax on the purchase of used machinery and offer soft loans for the purchase of new machines. A socalled Bt10billion "machine fund" will be set up to support further operations. These measures are expected to boost competitiveness among 2,000 existing or new SMEs as well as cut down on the import value of machinery by Bt4 billion, thereby boosting the productivity of around 20,000 skilled workers.

The second measure is to allow tax waivers for employers who register their workers for free or lowcost skillenhancement courses provided by the ministry.

The third proposal is to set up another fund worth Bt50 billion under the Small Business Credit Guarantee Corporation in order to provide longterm subsidies as well as amend relevant regulations that make the application for loans easier. The fourth measure is to cut down corporate income tax from 30 to 23 per cent.

These proposals and the final decision on them as well as the payment of the new daily wage should be completed within this month, he added.

Somkiat said he would ask for another Bt10billion fund to be set aside to provide soft loans for SMEs to help maintain their cashflow provided no workers are laid off.

Labour Minister Phadermchai Sasomsap said his ministry was studying employers' demand to not increase the minimum daily wage for three years once the Bt300 rate is put in place. He said a study was needed to determine whether this was against the labour law, but added that he would do what he could to help.