Wage hike relief measures approved by cabinet

Published: 8 Jan 2013 at 16.29
Online news: News

The cabinet has approved tax relief proposals for small- and medium-enterprises (SMEs) affected by the increase in the nationwide minimum daily wage to 300 baht, which took effect on Jan 1.

The measures are aimed at helping SMEs with annual revenue not exceeding 50 million baht a year, and were proposed by the Finance Ministry after an approach by the private sector.

Revenue Department chief Sathit Rangkasiri said the measures include raising the income tax exemption limit for SMEs from 150,000 baht to 300,000 baht a year. SMEs declaring income between 300,000 and one million baht will be taxed at 15% and those with over one million baht profit will pay tax at 20% on the difference.

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boons
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Discussion 12 : 11 Jan 2013 at 15.3912
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D10: That's a silly question. Workers in Cambodia make less than 100 baht per day. Workers in Burma even less. This is a question of economic viability, not what one "should" have in some personal, fairy-tale version of the universe. One could also claim that people "should" have free healthcare, unemployment insurance, college educations, subsidized child-care, state provided housing, and on and on. Thailand is an 80% export economy surrounded on ALL sides by ASEAN nations with cheaper labor. Exports are collapsing as is global demand. What is coming down the road for Thailand is far worse than low salaries: It's "no" salaries.
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1man1vote
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Discussion 11 : 09 Jan 2013 at 06.2511
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Minimum wage is a classic no-go in economics. Wages should go up with worker's productivity, not by government intervention. All will bear the consequences of this government's stupidity.
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honzad
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Discussion 10 : 08 Jan 2013 at 22.3510
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I am really curious to know how many commentators on this website earn 300 baht per day - or per hour, come to that? When you have lived like that you are free to comment. Until then....
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peterd
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Discussion 9 : 08 Jan 2013 at 22.229
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#8, Stop the blabla... In Thailand some people exploit the others and hope than the army will help them to keep their profits and privileges. In a just an modern society all must correctly live (and take care their family) with their job. Who are you to say what need the people? Education, tell you? Why they don't send their kids in Oxford, correct? Even with 300 hundred bahts ("they don't need") what stay for send a kid in a good school, pay the house rent, the food, the water, electricity, phone, dresses, gazoline? Try one month....
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wakeup
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Discussion 8 : 08 Jan 2013 at 21.248
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Again - people don't need wage increases, they need education & prospect "increases." People are exploited because they lack the means to find a better job, or to start their own business. Handout will never improve the lot of Thailand's poor - they are temporary stunts designed to win votes - at the cost of long term stability for ALL.
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Eric
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Discussion 7 : 08 Jan 2013 at 20.447
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Must complement the BP for continuously unearthing these stories of poorly managed companies whose primary business plan are to pay the lowest wages and reap a profit. These industries without much guessing will be the garment, furniture, foot wares and similar who should have invested in mechanization with their profits but instead stuck to the low wage model and now being caught out. They can either move to Laos or improve their productivity. And AEC would not open the flood gate for workers as they still have to be legally registered which the government can control inflow.
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onlyme
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Discussion 6 : 08 Jan 2013 at 20.196
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Government by a white cane.
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peterd
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Discussion 5 : 08 Jan 2013 at 20.145
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Very good to talk about the salaries so the whole world can see what can be the life of a Thai worker (At the beginning, i thought the workers asked 300 bahts/hour). When i come in Thailand, i see a lot of big big houses, a lot of big cars and i remember that Thailand is rich as France or Germany. So, the Thai society look totally unjust and it's reasonable to want change it. Please, BP, tell the salary of a Thai worker today, maybe it will give a kind of decency in some comments.
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djjp
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Discussion 4 : 08 Jan 2013 at 19.344
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Rice policy scheme. Successful yet it knocked Thailand off the perch as top exporter of rice, cost the government billions and they have warehouses full of rice that they lied will go to G-G deals. Wage increase successful yet 1000's have lost their jobs. In both instances it was not their populist policy that caused the negative effect. The rice export shortfall was due to the European economic crisis and in this case, well umm, external factors with a hint of wage hikes. The rope is getting shorter and amnesty for the sorcerer is not in site yet. Desperation must be setting in.
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Renaissance
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Discussion 3 : 08 Jan 2013 at 19.113
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Thaksin is going to have to come up with some really spectacular populist policies in the next elections. It seems that his current populist policies are failing miserably and making many people unhappy with him. With the sharp increase in the cost of living and people becoming unemployed, I'm not sure how he can keep his other promise that there will be no poverty within 3 more years. As for rice exports, selling rice in 2013 already looks very bleak indeed. I wonder if Thais will learn from this and question his populist policies next time around. I have my doubts though.
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