Caretaker Commerce Minister Somkid Jatusripitak plans to ask the finance minister to approve a Bt15,000 tax deduction for a special insurance policy dedicated to parents.

After a talk yesterday with representatives from the Thai Life Assurance Association, the General Insurance Association, Export-Import Bank of Thailand (Exim Bank) and the Bank for Agriculture and Agricultural Cooperatives (BAAC), the commerce minister came to the conclusion to offer those who buy an insurance policy for their parents an additional tax deduction of up to Bt15,000.

Currently, the Finance Ministry allows insurance policy-holders tax deductions of up to Bt50,000.

The additional Bt15,000 quota is an attempt to encourage people to take care of the elderly and infirm.

"We hope to launch such a policy by August 12, which is Mother's Day. So far, most people buy an insurance policy for their kids and spouses only.

"So, this policy will help provide for the elderly," said Somkid.

There will also be changes in tax deductions for group insurance.

Earlier, companies who bought group insurance could add this insurance expense to salary payments for the sake of tax calculation.

Somkid will advance the idea that each employee can take advantage of the company's group insurance for individual tax deduction.

The new regulation will be announced soon.

Following the meeting, BAAC is to join forces with insurers to work out an agricultural insurance policy.

Exim, meanwhile, will focus on business insurance.

Exim's involvement will cover the plan to expand Thai cuisine in the global market place.

As life-insurance companies and the Government Pension Fund have a large amount of liquidity, Somkid has also asked both parties to come up with a long-term investment fund.

Later, he will visit the Middle East to survey interest in such a fund.

Petchanet Pratruangkrai

The Nation