Selective cut in income tax, venture capital fund among measures to be proposed to Cabinet today
The Finance Ministry will today propose to the Cabinet six key measures to help small and medium-sized enterprises in the new year.
A ministry source said the six measures would be effective from January 1 if approved.
The first is the reduction of corporate income tax to 15 per cent for SMEs whose annual net income is not higher than Bt3 million, and 20 per cent for those above that level. Currently, businesses that earn Bt1 million and higher annually are levied corporate income tax of 20 per cent, while those whose net income is not higher than Bt300,000 per annum are tax-exempt.
Under the second measure, the Finance Ministry will set up a venture capital fund worth about Bt50 billion to be spent on joint investment projects with SMEs.
Third, the ministry will allow businesses to organise nano-financing, with small loans not higher than Bt120,000 granted to individuals at an interest rate not higher than 36 per cent per annum. The measure aims to provide an alternative to loan sharks, who force borrowers to pay interest as high as 20 per cent per month or about 60 per cent per year.
The fourth measure is an invitation for memberships in the National Savings Fund.
Fifth, the Public Debt Management Office will offer Bt100 billion worth of high-interest savings bonds to small business operators and the general public, with elderly people targeted as the first priority.
The last measure will comprise programmes submitted by the state banks, such as those set by the Bank for Agriculture and Agricultural Cooperatives to help farmers and the lending schemes by the Government Savings Bank to help small business operators.
Somchai Poolsavasdi, director-general of the Excise Department, said his agency was focusing on providing more convenience to business operators who wanted to extend their licences to sell liquor, cigarettes and playing cards next year.
"At present, the department is allowing operators to extend their licences by mail for greater convenience. As a New Year gift, the department has joined with Counter Service outlets throughout the Kingdom so that individual entrepreneurs will be able to extend their licences via their branches," he said.
About a million business operators hold licences for the sale of liquor, cigarettes and playing cards. Those needing new licences to sell such products have to visit the Excise Department's offices, as the agency needs to verify their eligibility.