Paopoom Rojanasakul, Deputy Minister of Finance, announced plans to expand Thailand’s tax base and introduce initiatives to encourage long-term savings. These measures, along with the budgets for the latter half of 2024 and 2025 and the Digital Wallet Stipend policy, aim to stimulate the nation’s economy.
In a statement, Paopoom highlighted the importance of coordination between the Bank of Thailand (BoT) and the Ministry of Finance in managing economic policy. He stressed the necessity of frequent and close consultations to ensure effective economic management.
Key economic drivers for the second half of the year include significant allocations from the 2024 and 2025 budgets and a 500 billion baht Digital Wallet Stipend. This stipend is expected to circulate within the economy and potentially surpass the GDP growth target of 2.4% for 2024. The government has assured that funding for the Digital Wallet project is secure and well-prepared.
Paopoom, who also serves as Deputy Commerce Minister, disclosed that the government is considering new measures to promote long-term savings, addressing the limitations of existing funds like the Social Security Fund and the Provident Fund. The Ministry of Finance plans to propose loans for three key industries—food, comprehensive healthcare, and tourism—to the Cabinet.
To improve access to capital, the government will permit an unlimited number of licenses for Virtual Banks, enabling more small businesses, SMEs, and entrepreneurs to secure funding. Additionally, the criteria for establishing Pico Finance in rural areas will be adjusted to enhance access to funding and reduce reliance on informal lending.
Paopoom emphasized that increasing tax rates during an economic slowdown is not advisable. Instead, the ministry plans to broaden the tax base by including businesses and individuals who meet the income criteria, thereby boosting state revenue without significantly affecting public welfare.
Officials and stakeholders, including representatives from the Ministry of Finance and the Bank of Thailand, attended the announcement, underscoring the collaborative effort behind these economic strategies.