The Federation of Thai Industries (FTI) has proposed to the government that it makes an exemption from paying corporate income tax, extends the period for the submission of tax returns and exempts import tariffs on machinery for businesses hardest hit by the flooding.
FTI President Kriangkrai Thiennukul said today that the industrial confidence index for August was 87.7, which was lower than the preceding month, due mainly to a slowdown in demand, particularly for durable goods like automobiles.
Total car sales for the first seven months of this year were 354,421 units, down by 23.71% compared to the same period last year. Sales of commercial and pickup trucks were hardest hit, due to the tightening up on the issuing of car loans by financial institutions.
The recent flooding in northern and central provinces has caused extensive damage to the agricultural and industrial sectors, resulting in a slowdown in the construction sector. High freight charges and the rapid appreciation of the baht currency, from 36.46 baht against a US dollar in July to 34.92 baht in August, have also made Thai goods less competitive in the world market, said Kriangkrai.
He said the tourism sector remains, however, a key driver of domestic consumption and the Thai economy. Tourist arrivals for the first eight months were about 23.5 million, up 31% year-on-year, generating more than one trillion baht in revenue.
Kriangkrai said that businesses are concerned over the proposed increase in the minimum wage to 400 baht, which will affect their production costs.
He suggested that the government complies with the decisions of provincial wage committees regarding the minimum wages applicable in each province, instead of the national wage committee, and that the government should take into account the current economic situation when determining the minimum wage.
To deal with the dumping of cheap imports, he said the government should strictly enforce the anti-dumping law.
