Cabinet extends cost-of-living measures

 Finance Minister Korn Chatikavanij said that all the five measures' details are unchanged. Four million households are to benefit from the free water bills, for the consumption of less than 30 cubic metres a month. A number of 8.5 million households will be waived of electricity bills for consumption of lower than 90 units a month. About 430,000 commuters a day will be offered the free bus rides in 73 routes. A number of 2.8 million passengers a month will take free economy-class train rides.

 The cooking gas price for household use would also be maintained. In total, the government expects to shoulder the cost of Bt11 billion. All will come from the 2010 budget.

 "The measures are extended to alleviate the cost of living while investment under the second stimulus package is being rolled out during the period," he said.

 The Finance Ministry also insisted that despite the lower global oil prices, fuel excise taxes would not be lowered.

 Korn however said the ministry is prepared to ask for the Cabinet's approval on July 21 to lower the 15 per cent withholding taxes on the interest of savings accounts. This is in line with the extra low savings rate, and the government's offering of 4 per cent fo savings bonds.