The Joint Public-Private Consultative Committee yesterday agreed in principle with a proposal to cut corporate income tax for small and medium-sized enterprises (SMEs) for three years in a bid to help them stay afloat.
Arkhom Termpittayapaisith, secretary-general of the National Economic and Social Development Board, said the proposed tax cut would apply only to SMEs with sales of 200 million baht or less.
The panel chaired by Prime Minister Prayut Chan-o-cha also agreed in principle on a tax proposal by the Federation of Thai Industries (FTI).
Under the proposal, SMEs with a net profit of 5 million baht or less would pay 5% tax, those with a profit of up to 10 million baht would pay 10%, and those with a profit of up to 20 million baht would pay 15%.
The current income tax rate is 20% for companies with a net profit greater than 1 million baht.
SMEs have been vulnerable since last year's political chaos as the economy grapples with ballooning household debt, delays in public spending, tepid exports and lukewarm tourist figures.
FTI chairman Supant Mongkolsuthee said the business sector also proposed a tax amnesty scheme for SMEs as a means of drawing them into the formal tax system.
The amnesty would dispel SME worries over backdated tax probes upon entering the system and help the government to collect more revenue.
Thailand has an estimated 2.79 million SMEs, but only 600,000 to 700,000 are part of the formal tax system.
A joint working panel will be set up later to study the proposals.
The working panel — which includes representatives from the Commerce Ministry, the Interior Ministry, the Industry Ministry, the Office of SME Promotion and the Joint Standing Committee on Commerce, Industry and Banking — will be instructed to study various issues such as a venture capital fund for SMEs.
Mr Arkhom said the committee also agreed in principle on a multiple-entry visa to boost tourism from the US, EU, Australia and Japan.
Ittirit Kinglek, president of the Tourism Council of Thailand, said the multiple-entry visa would attract more than 300,000 foreign visitors and generate more than 12 billion baht this year.
Isara Vongkusolkit, chairman of the Thai Chamber of Commerce (TCC), said the government must pay special attention to tourism this year, given its crucial role in boosting the economy.
The TCC forecasts full-year economic growth of 4%, while the FTI expects only 3.5%.