Finance Minister Chalong-phob Sussangkarn is expected to ask the Cabinet to approve the new tariff rates next week, Somchai said.

About 150 raw materials used in many industries would be subjected to new import tax of between 0 and 1 per cent, down from the current rates of 1-30 per cent. Most are materials containing glass. They are not produced locally, so the

tariff cuts will not negatively affect local industries, said Somchai.

The latest package of cuts will benefit many industries, including car manufacturing, electronic products, electrical appliances, petrochemicals and food, he added.

The cost of the tax cut to the Customs Department is estimated to be Bt600 million to 700 million.

The Finance Ministry,

however, believes lower tax on raw materials will increase

the competitiveness of local industries and generate more revenues from the export

market.

After Cabinet approval, the tax cuts will take effect within a month or when published in the Royal Gazette.

The restructuring of tariff rates is an ongoing process, and more cuts are likely to follow, Somchai added.

Wichit Chaitrong

The Nation