Squandering money as firms struggle
Re: "Businesses unimpressed by govt compensation to deal with wage hike", Business, January 9.
If the solution to help small and medium-sized enterprises (SMEs) is funding support for them, according to the Federation of Thai Industries' request, it will need a budget of about Bt140 billion over three years to compensate for the minimum wage hike.
A ladder has been proposed whereby the government compensates firms 75 per cent in the first year, and 50 per cent and 25 per cent in the remaining years respectively.
The government is fully willing to admit losses from the rice price-pledging scheme of at least Bt100 billion, and for the first-car buyer programme of almost Bt100 billion. Revenue loss from the corporate income-tax cut from 30 to 23 per cent will cost around Bt150 billion per year, and the rate will be cut to 15 per cent in the next three years.
SMEs are a real sector and the economic foundation of the country. Why is the government willing to admit the above losses but is not willing to help SMEs that are in trouble and have a high possibility of shutting down?