Bangkok: Ekniti aims to revive the Thai Savings and Investment Policy (TISA) and accelerate the development of the "10 Plus for the Future" strategy. Dr. Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, stated that to support the government's Quick Big Win economic policy, a team must be formed from both civil servants and the private sector. The goal is to create a fast and modern working mechanism, helping to reform organizations through business models and digital technology. Therefore, the team that previously laid the foundation for the Carbon Tax policy and the TISA long-term savings concept has been brought in to stimulate the economy in the short term, with long-term effects and nationwide distribution. He acknowledged that Prime Minister Anutin has given him considerable freedom in formulating economic policies.
According to Thai News Agency, the government is currently accelerating the development of its economic policies, and most are nearing completion. Only the long-term savings and investment measures under the Thailand Individual Saving Account (TISA) program need minor adjustments. This proposal, originally intended for Cabinet submission but delayed due to the dissolution of Parliament, focuses on providing benefits to individual investors and salaried employees earning no more than 1.5 million baht per year. It will also offer greater freedom to choose individual investment portfolios (stocks, bonds, government bonds), rather than being limited to investment units as in the previous LTF (Long-Term Equity Fund) scheme.
By exempting dividend income from tax on the first 200,000 baht, and attempting to maintain the overall tax deduction ceiling at 800,000 baht (which may have been reduced to 500,000-600,000 baht previously), through investments in Thai ESG funds offering a 1.2x incentive for those who purchase Thai ESG funds, in order to stimulate the recently sluggish capital market, with a 3-year timeframe, it is acknowledged that the TISA concept needs further revisions to align with the current situation.
The government is accelerating the development of the "10 Plus for the Future" strategy, divided into two main groups (5 buttons each). The first five buttons are: 1. Income distribution guidelines, focusing on salaried employees and vulnerable groups; and 2. The elderly (Elderly Plus), by training 75,000 volunteer nurses to care for the elderly, providing greater access to medical care for the 14 million elderly people. This is in preparation for an aging society, projected to reach 30% in the next 5-10 years, and aims to create income opportunities for retirees so they don't become a burden on their children. The budget for this initiative is 13.5 billion baht.
3. SME Plus: Giving a competitive edge to Made in Thailand products. 4. Community Plus: Solving debt problems and creating local jobs, encouraging young people to return home. 5. Equal Education (Free Online Skill Up): Building a skills bridge, providing free education with job opportunities, addressing outdated curricula that don't align with the labor market, and a shortage of specialized teachers.
For the five key initiatives aimed at enhancing the country's potential and creating a new capacity to accommodate the overflowing existing cup, these are: 1. Investment Plus at the grassroots level, distributing funds to local areas and focusing on new investments by creating an Investment Fast Pass to unlock 80 projects already approved by the Board of Investment (BOI), totaling over 480 billion baht, that are currently stalled due to pending investment certificates or permits. 2. Green Economy, attracting investment in line with global trends in clean energy.
3. AI: Concepts, working methods, and technologies, including tools like ChatGPT, Gemini, and NotebookLM for data analysis and strategic planning in online commerce, aiming to empower small businesses. The concept involves using AI and digital data to create cashback or discount systems via apps to encourage users to request receipts and register for tax compliance. 4. Trade (Trade Plus) and Regulatory Adjustments (Thailand Plus). 5. Upgrading Small and Medium Enterprises (SMEs Online): This focuses on providing training rather than simply giving away money (fish), emphasizing online sales training. Following reports that vendors participating in the "Half-Price Plus" project and learning online sales techniques experienced an average income increase of 49 times, the "Half-Price Plus" project needs further adjustments in several areas.
Mr. Ekniti further stated that the idea of adjusting the Value Added Tax (VAT) must wait until the economy recovers and there are "give and take" measures in place, such as using the revenue to increase welfare or reducing personal income tax to compensate, so that people from all sectors are willing to pay. This will take some time.