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Commerce Ministry defends its latest economic stimulus package
NationalOct 12. 2020
By THE NATION
The Commerce Ministry provided clarifications of its new economic stimulus scheme after it was criticised by property developer Srettha Thavisin and Kasikorn Research Centre.
The new scheme, “Shop Dee Mee Kuen” (Shop and Payback), proposed to run from October 23 to December 31 was given the green light by Cabinet on Monday.
Under the scheme, people who purchase specific products that include value-added tax (excluding alcohol, tobacco, hotel accommodation and flight tickets), OTOP goods or books will be given a tax discount.
Srettha, president of property giant Sansiri, said this stimulus package will not be of much help because people are not financially liquid enough to spend money to get the payback. He also said that this scheme is not addressing the main economic problems of the country.
The Kasikorn Research Centre, meanwhile, said the scheme is only a short-term measure and will only really benefit huge businesses, not small, independent ones.
The Commerce Ministry, however, said this latest payback scheme was designed along the lines of the previously launched “Kon La Khreung” (Let’s Go Halves) scheme and the move to boost the credit limit of state welfare cards.
It said that more than Bt192 billion is being spent on these schemes, and this money will begin circulating in the economy and should boost the gross domestic product (GDP) by 0.54 per cent. The ministry also insisted these schemes were created to support more than 28 million people nationwide.
The ministry also said “Shop Dee Mee Kuen” aims to support entrepreneurs in the tax system as well as people who pay personal income tax. The scheme will promote local products and urge people to read more.