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https://www.nationthailand.com/business/40011003

Kla Party leader Korn Chatikavanij urged the Revenue Department on Wednesday to delay taxing cryptocurrency trading until it has listened to opinions from experts.

Korn, a former finance minister, said the department should allow stakeholders to propose ideas and it should take more time to study the best way to collect taxes on cryptocurrency before it issues new regulations.

The department last week announced its plan to collect 15 per cent withholding taxes on transactions involving cryptocurrencies. The department said the loss from previous and future trading could not be cited for tax deduction. Profit from the trades throughout the year would also be added as income for paying yearly income tax, the department said.

Revenue Department director-general Ekniti Nitithanprapas said on Monday that his agency was discussing cryptocurrency tax guidelines with the Bank of Thailand, the Securities and Exchange Commission and other bodies and it was likely to issue tax rules on the crypto trade by the end of this month.

Korn said the department should also study taxing methods of other countries before making a final decision.

Apart from the capital gains tax (CGT), Korn said, traders and crypto exchange operators would also ask the department to clarify its plan to collect VAT when cryptocurrencies are used to buy goods.

Korn said the department should go in for VAT exemption when vendors accept cryptocurrencies for their goods or services because there will be double VAT charges – on goods or services as well as on the exchange of crypto into baht.

Korn cited three main issues for the department to study:

1) VAT and Goods and Services Tax: He said Singapore, Australia and some EU nations exempt VAT on the use of cryptocurrencies to buy goods and services.

2) Capital Gains Tax: Korn said several Asian countries, including Singapore, Malaysia and Hong Kong, do not collect CGT from cryptocurrency trading. He said these countries allow traders to calculate their profits or losses before paying annual personal income taxes.

3) Tax exemption: Korn noted that South Korea initially planned to collect 20 per cent tax on trading of cryptocurrencies with exemption for the first 2.5 million won earned. The rule was delayed to 2023 following strong opposition. Korn said the Revenue Department should also consider an amount that would be exempted from tax, such as the first Bt100,000 earned from trading in cryptocurrency.

“I don’t agree with the plan to collect this tax until the Revenue Department can clear all the doubts as mentioned,” Korn argued.

“It must also make clear how it will manage a fair tax collection from all people involved,” he added.

Published : January 12, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40011001

Thai President Foods has informed the Commerce Ministry that it will not increase the price of its popular instant noodles under the “Mama” brand despite an increase in manufacturing costs.

“The manufacturer has insisted that the price of Mama instant noodles in bag form will remain the same as the company is committed to helping alleviate people’s financial burden,” Manlika Boonmeetrakul-Mahasuk, adviser to the Commerce minister, said on Wednesday.

“The company said it would employ a cost management strategy to deal with the increasing costs of wheat flour and palm oil, the two key ingredients in instant noodles.”

Apart from the highly popular Mama instant noodles, which retail starting at 5-6 baht per bag, Thai President Foods also manufactures instant rice porridge and a variety of biscuits.

Commerce Minister Jurin Laksanawisit has urged manufacturers of necessary consumer goods to fix prices as long as they can so people are not burdened further at a time when prices of several farm products are skyrocketing, Manlika added.

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Published : January 12, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40010992

The Bank of Thailand (BOT) is preparing for four types of economic and financial risks that could occur in 2022 as the economy is still recovering from the impact of Covd-19, leaving many sectors vulnerable.

Speaking at BOT’s Meet the Press event on Tuesday, central bank governor Setthaput Suthiwart-Narueput said that this year economic recovery is seen to be in a K shape, where only certain sectors, industries or areas of the economy recover while others persistently lag behind.

“The Thai economy should bounce back to before Covid levels not sooner than the first quarter of 2023,” he predicted. “This is because our economy relies heavily on exports and tourism, while employment in related sectors will not bounce back anytime soon,” he believed.

“This year we are prepared for four challenges that can potentially occur – namely the Omicron outbreak, inflation, an NPL cliff, and an increase in policy rates by global central banks,” Setthaput said.

“As for the first risk, the Omicron outbreak, BOT estimates the new variant’s spread would stop within the first half of the year,” he said. “Although Omicron can spread faster than the Delta variant, it will not cause the economy to ‘halt’ for a long time. The banking system will continue to roll out more loans while the central bank will issue financial measures to make sure different sectors can maintain solvency during the outbreak,” he said.

“BOT estimates that Thai inflation in 2022 will be in an acceptable range of 1.4 to 1.7 per cent, but it could rise next year, though it won’t reach 2.0 per cent,” Setthaput said.

“Our latest survey found that the hike in product and service prices has yet to be distributed across all sectors, which means there is a small chance that inflation will cause the overall economic recovery to stumble. The central bank will however use appropriate measures to prevent inflation from growing more than the estimation,” he said.

The central bank also estimated that next year there is a small chance of an NPL cliff, or a situation where a lot of debt defaults occur in a very short time, forming a cliff of non-performing loans, or NPLs.

“As the economy still faces many uncertainties, the number of NPLs will gradually rise, but will probably not form an NPL cliff this year,” Setthaput hoped.

“To prevent an unexpected rise in NPLs, BOT will promote joint ventures between banks and asset management companies so they can help borrowers who fall behind, while making sure commercial banks have enough reserves to cover increasing defaults,” he said.

“The last risk that we might face in 2022 is a hike in policy rates by global central banks, especially the Untied States [Federal Reserve]. Such a hike would affect the economic recovery of many developing countries. However, we estimate that the effect on Thailand, should there be any, will be minimal as we still have a strong international financial status and do not suffer from structural vulnerability as during the 1997 financial crisis.”

Before closing the event, Setthaput said BOT would issue Thailand’s Financial Landscape Consultation Paper on February 2, which will include new issues such as digital assets and a green economy.

After issuing the paper, BOT will accept opinions from different groups and industries for a month before using them to draft out the country’s financial policy.

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Published : January 12, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40010990

As if a rise in pork and egg prices is not enough, the public are set to feel further pain as liquefied petroleum gas (LPG) prices and Khlong Saen Saep boat services fares are also expected to rise soon.

The Energy Ministry said on Tuesday that moves to consider increasing the LPG price was troublesome as the cost of living is rising, what with pork and eggs becoming more expensive.

It said the Energy Policy and Planning Office had initially come out with guidelines to raise the LPG price three times until the latter part of this year: from 318 baht per 15-kilogram tank to 333 baht, then 348 baht and subsequently 363 baht.

“It is up to the Energy Policy Administration Committee, which consists of Energy, Finance, Transport, Commerce and Industry ministries and the National Economic and Social Development Council to ensure that the decision will cause as less of an impact as possible on the public,” the Energy Ministry said.

The Energy Policy Administration Committee recently decided to maintain the LPG price at 318 baht per 15-kilogram tank until March 31 from the previous January 31.

The committee also asked PTT to consider reducing the LPG price for state welfare cardholders until March 31.

Meanwhile, Deputy Transport Minister Atirat Ratanasate said Krobkrua Khonsong’s move to raise its Khlong Saen Saep boat fares starting with 9 baht in 2020 was in line with the Marine Department’s announcement as the company had suffered heavy losses during the Covid-19 crisis.

“After Krobkrua Khonsong kept its boat service fares stable for 636 days, the company said on January 7 that it would raise fares by 1 baht from January 14,” Atirat added.

Published : January 12, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40010984

The baht hit its lowest point in almost a week, opening at 33.30 to the US dollar, down from Tuesday’s closing rate of 33.41.

The Thai currency is likely to move between 33.20 and 33.40 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

Poon said that the baht might strengthen slightly. He said the baht was supported by the dollar and the gold-selling but the Omicron situation pressured the baht. Foreign investors must heavily invest in the baht for it to strengthen past level 33 to the dollar.

The currency market is in a risk-on state after the US Federal Reserve’s chairman statement to Senate Banking Committee was the same as the market expected. 

The Fed’s chair said the Fed will increase the policy interest rate more than expected to control inflation while the Fed will be able to reduce the balance sheet fasten from the past.
 

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Published : January 12, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40010980

Krungsri Securities forecast the Stock Exchange of Thailand (SET) Index on Wednesday (January 12) would rise to between 1,675-1,680 points in line with rising oil prices of above US$81 per barrel.

It said the index also gained positive sentiment from fund inflow on hopes over Thailand economic recovery as the number of Covid-19 cases is likely to decline.

“However, the index would be under pressure due to mass sell-offs of shares to cope with risk from the US Consumer Price Index announcement, as well as technical signs,” Krungsri Securities said.

It also recommended buying of the following companies’ shares as an investment strategy:

• PTTEP, TOP, PTTGC, IVL and SPRC, which benefit from rising oil price and gross refining margin.
• BBL, TTB, KBANK and BLA, which benefit from news of interest rate hike.
• RCL, LEO, III, WICE, SONIC and JWD, which benefit from rising freight rate.

The SET Index closed at 1,667.12 on Tuesday, up 0.61 per cent, with transactions totalling 79.24 billion baht.

Published : January 12, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40010958

Hotel occupancy in Thailand is expected to plunge 20 per cent in January over fears of the highly transmissible Omicron variant sparking an outbreak.

Marisa Sukosol Nunbhakdi, president of the Thai Hotels Association, said on Tuesday that the occupancy rate of hotels this month will be similar to that in October last year when tourists were restricted over fears of the Delta variant.

She said the situation improved in November and December when the country was reopened to tourists under the Test & Go scheme, in which fully vaccinated people only had to spend the first night in isolation while they waited for their RT-PCR test results.
However, she said the indefinite suspension of the Test & Go scheme coupled with the work-from-home (WHF) directive until the end of January would definitely affect the income of hotels. The WFH directive is prompting companies to cancel plans to hold seminars in hotels, she explained.
Marisa added the hotels association, in cooperation with the Bank of Thailand, surveyed 134 hotels from December 9 to 24. The survey also included 23 hotels earmarked for alternative quarantine and three “hospitel” hotels.

The survey found that 111 hotels that are not earmarked as alternative quarantine sites or hospitels saw bookings rise to 37 per cent compared to 30 per cent in November.
Marisa said the high-season, easing of control measures including the greenlight to serve booze in restaurants along with New Year celebrations and the Test & Go programme contributed to the improvement.
The survey found that 74 per cent of hotels had resumed normal operations compared to 68 per cent in November. She added that 49 per cent of the hotels surveyed earned 30 per cent of the revenue they earned before the pandemic, while only 25 per cent managed to have 50 per cent of their revenue restored.
She said the survey found that most hotels’ liquidity had improved in December, but 58 per cent said they only had enough to survive for three months, while 8 per cent only had enough to survive for one month.
The survey also found their room occupancy rates were about 45 to 55 per cent and most had only rehired some 60 per cent of their pre-pandemic workforce.
Marisa added that 49 per cent of the hotels said they were worried about the country closing to tourists again due to Omicron, while 72 per cent said they would have to reduce their staff to stay afloat.

Published : January 11, 2022

By : THE NATION