A series of new economic measures including tax cuts for small businesses, a 100-billion-baht savings bond and establishment of a National Savings Fund (NSF) are up for cabinet approval today.
The package, aimed at stimulating the lacklustre economy, consists of six measures, a source said.
Under the package, small and medium-sized enterprises (SMEs) would enjoy corporate income tax cuts to 15% for annual income of no more than 3 million baht and 20% for more than 3 million. SMEs are now subject to a tax waiver for revenue of 300,000 baht or less, 15% for revenue between 300,001 and 1 million and 20% for more than 1 million.
Establishing a 50-billion-baht SME venture capital fund is one measure to offer another source of funding for small businesses, the source said.
SMEs have been vulnerable during this year's political chaos and stagnant economy as they grapple with ballooning household debt, delays in public spending, tepid exports and lukewarm tourist figures.
The source said the government planned to issue nanofinance licences to address the loan shark problem. Interested investors can apply for nanocredit licences to set up a firm to operate retail credit facilities offering 100,000 to 120,000 baht per borrower at a lending rate with maximum annual interest of 36%.
The 100-billion-baht savings bond is set to be sold to general investors, with a focus on the elderly.
The Finance Ministry will propose revitalising the long-delayed NSF's creation. If it does, members of the Social Security Fund under Section 40 will be transferred to the fund.
The Acts, aimed at establishing a retirement safety net for self-employed workers who are not covered by the Social Security system or provident funds, allows those aged 15-60 to join the NSF with a minimum monthly contribution of 50 baht and a maximum of 13,200 baht a year. The government would contribute up to 50% of the savings but no more than 600 baht a year for workers aged 15-30, while it would contribute 100% of the savings up to 1,200 baht per year for those over 50.
Members can earn a pension at 60 if they have enough contributions.
Workers outside the formal system can join the fund, either paying a monthly contribution of 100 baht with the government contributing 30 baht or contributing 150 baht a month with the government contributing 50 baht.
Loan extension through state-owned banks is another measure.
"The Finance Ministry's plan originally contained four measures, but Finance Minister Sommai Phasee thought this was not enough," the source said.