suchart floats income tax reductions

The government may lower corporate and personal income taxes to stimulate local spending and counter the effects of a global recession and the domestic political conflict that has claimed at least five lives, said Finance Minister Suchart Thadathamrongvej.

"If we want to do something, we should do it quickly amid political uncertainties like this," Suchart said yesterday. "I will speed up the consideration process."

At least five people have been killed in Bangkok since August 26 amid the anti-government protests that began in May. A global recession is sapping demand for exports of rice, rubber and automobiles that have been the main drivers of Southeast Asia's second-largest economy.

General Motors yesterday said it would cut the number of employees and shutter its Thai plant for a month from mid-December.

"We will also focus on labour problems," Suchart said. "We want to lower the burden on the industry."

Thailand's economy may expand by less than 4 per cent in 2009 as exports slump, Suchart said on October 20. That would be the slowest pace since 2001 and compares with the Finance Ministry's 5.1-per-cent growth forecast for this year. Shipments abroad account for about 70 per cent of gross domestic product.

GM, the biggest US auto-maker, will cut local staff by 8 per cent because of slowing global demand, Chartchai Suwanasevok, the Thai unit's spokesman, said in a telephone interview.

One person was killed and 26 injured in a bomb blast early yesterday at Government House, which has been occupied by anti-government protesters since August.

The SET Index of stocks has sunk 56 per cent since May 25, when the protests began.

The baht yesterday sank to a 20-month low against the US dollar on signs the global economic slump is deepening.