TRADE BODIES SEEK REVAMP OF DUTY-FREE CONCESSION

Corporate March 29, 2018 01:00

Representatives of Thai Retailers Association, the Thai Duty Free Shop Trade Association and the Thai Shopping Centre Association yesterday submitted a proposal to Prime Minister Prayut Chan-o-cha calling for a revamp of the system on granting concession to duty-free shops in order to ensure transparency and fairness.



Thai Retailers Association director Chatchai Tuangrattanapan said the existing concession of the duty free shops in Suvarnabhumi airport will expire in September 2020 and that the Airports of Thailand is drawing up the term of reference to grant a new concession. This is good time to propose to the government an overhaul of the concession granting system, he said. 

According to the proposal, instead of awarding one concession, the AOT should award several concessions based on the type of merchantile. 

The concession period should be reduced to between five and seven years instead of the current 10 years. The annual concession fee ceiling should be raised to not exceeding between 25 per cent and 30 per cent of the concession holder' revenue from the current level of 15 per cent and 20 per cent. A committee should be set up to oversee the processes of awarding concession and the ToR drafting. 

YEAR’S GROWTH FORECAST

REVISED UP TO 4.1 %

The Bank of Thailand's Monetary Policy Committee (MPC) has revised up its estimate for this year's economic growth to 4.1 per cent from an earlier forecast of 3.9 per cent, given the improvement of the overall economic outlook, particularly in exports and tourism.

A 4.1 per cent economic expansion is also expected for next year.

Exports and tourism tend to expand on global economic expansion, said Jaturong Jantarangs, assistant governor for the central bank's Monetary Policy Group.

Private investments have increased continuously in line with the country's economic growth and will further expand with government support, he said. However, there remain risks to the Thai economy due to uncertainties of the US protectionist trade policy, possible retaliation measures from its trading partners and the impacts on global commerce, trading countries and Thai exports, he said.

Public spending will drive the Thai economy if there is no delay in budget disbursement, he said.

In yesterday meeting, the MPC also decided to leave the policy rate unchanged at 1.5 per cent.