Govt offers to subsidise SMEs for half of wage hike costs

Apisak said on Thursday that he will propose a tax package to the Cabinet to assist small and medium-sized enterprises that would be adversely affected by the new wage, which is an averages 5 per cent above the previous minimum wage.
His comment came after business leaders complained about the government plan to raise wage between Bt5 and Bt22 by region across the country, fearing it will create a rise in the cost of production that would particularly affect SMEs.
Apisak said SME with annual revenue of not more than Bt100 million will get tax deductions.
Companies would be able to write off their increased costs for daily wages at the rate of 1.15 times what they paid, he said.
The assistance will result in government subsidising half of the value of wage hikes. For example, SMEs operating in provinces where the wage was hiked by Bt22 daily, will get a subsidy worth Bt11 from the government. 
The wage hike proposal and tax package will be submitted to Cabinet for approval next week.