Finance Minister Chalon-gphob Sussangkarn said last week the two ministries would form a committee to look at the possibility of granting personal and corporate income tax allowances to people and organisations that devote their time to a good cause.

The Revenue Depart-ment allows financial donations to charity to be de-

ducted. But there are people who don't have any money to spare but have

volunteered to work for the welfare of other people. They deserve a tax break.

For example, there are blind people who dedicate themselves to helping other disabled people, he said.

The Revenue Depart-ment will be consulted to prevent loopholes or tax evasion.

Deputy Prime Minister Paiboon Wattanasiritham has talked with Chalongphob about the issue as well as about an inheritance tax.

The interim government is expected to draft inheritance-tax legislation for the next government

As for the fate of the remaining state enterprises under the Defence Ministry, the Finance Ministry has not yet found a solution.

Former finance minister Pridiyathorn Devakula had planned to ask the Cabinet to dissolve the Battery Or-ganisation and the Tanning Organisation of Thailand.

The Glass Organisation, the Preserved Organisation and the Textile Orga-nisation have already been scrapped.

The Finance Ministry sees the two remaining state enterprise of the Defence Ministry as an unnecessary burden on taxpayers. But instead of winding them down, the government plans to inject Bt35 million into the Battery Organisation and Bt120 million into the Tanning Organisation in the fiscal year starting this October.

The retained losses of the Tanning Organisation have reached Bt374 million, a source said.