Thailand announces stimulus package
Bangkok - The Thai government on Tuesday announced an economic stimulus package amounting to an estimated 1.4 billion dollars in reduced fuel taxes, slashed utility bills and free transport for the poor.
Prime Minister Samak Sundaravej announced six measures aimed at cutting costs for the poor including reduced excise taxes on diesel and bio-diesel fuels, a price freeze on liquified petroleum gas (LPG) for household use, slashed water and electricity utility bills for households using minimal amounts, free transport on 800 buses servicing Bangkok and free tickets on third-class seats in the government-owned train service nationwide.
Samak said the measures, which will go into effect on August 1 and last for six months, would cost the government 46 billion baht (1.37 billion dollars) in lost revenues. The tax cuts on diesel and bio-diesel will start on July 25.
As a result of skyrocketing world oil prices and food costs, Thailand’s inflation hit 8.9 per cent year-on-year in May and could reach double digits this year.
Thailand announces stimulus package aimed at helping the poor