Somphong Charnsirisaksakul, managing director of Phongwarin Printing Ltd, a printer and exporter, told a seminar yesterday that ending the tariffs had boosted competitiveness in the local industry.

It had also boosted the ability of local printers to compete with rivals from regional countries like Singapore, Malaysia and South Korea.

The Cabinet agreed at a meeting last December 20 to abolish the tariffs, in order to promote the industry and improve the skills of Thai printers.

The cost of paper, which forms the bulk of the materials used in printing, was reduced 2-5 per cent, depending on its grade.

He said the move narrowed the cost gap between imported and locally made paper to 2-5 per cent, from 15-20 per cent before. This had helped to stabilise paper prices, because producers need not fear price fluctuations.

"We can work out a plan. For instance, we can stock less paper. We are also better able to compete in bidding for items, because we can use both local and imported paper," he said. "A majority of local producers and printers now base their output in accordance with client orders. By abolishing the tax, Thailand has become one of the lowest-cost printing centres in the world."

The Cabinet last year decided to end tariffs on 92 items, in order to promote a government plan to make the Kingdom a printing hub and allow Thais to have cheaper access to books, in order to improve their learning abilities.

Permsin Lertratkarn, managing director of Cordial Creative Ltd, said printing firms could now expand their margins and create new product lines.

Lower costs have prompted the industry to be more creative and not rely only on foreign orders, which yield low margins.

Narongsak Meewattanasuk, managing director of Soonthorn Film Ltd, however, said the move did not mean book prices would ease, because publishers were trying to freeze prices.

A high proportion of the profits from books and magazine comes from advertising.

Lawan Poosuwan, a Finance Ministry tax officer, said the government wanted to encourage publishers to diversify their products.

But he said manufacturers should cooperate with each other in sharing production costs.

Watcharapong Thongrung

The Nation