Tax officials barred from consulting jobs

Speaking at a seminar hosted by Rangsit University, Korn said many tax officials at the Revenue Department had taken consulting positions at private firms, the same companies from which they collect corporate income tax. "It is a conflict of interest that I have to eradicate, to improve good governance" Korn told seminar participants.

This is part of the public sector reform that the government is going to undertake after implementing the first round of economic stimulus measures, Korn said.

He said that from early next year tax officials will not be allowed to accept tax consultancy positions and that the ministry is currently drafting the new rules.

He said Prime Minister Abhisit Vejjajiva had told him that some government departments have to be reorganised and the government would opt to use outsourcing services from the private sector.

Korn said stricter rules are also to be imposed on stock trading by finance ministry officials. From next year, they have to report all their trading activities. Korn said that officials have access to inside information that could affect

 prices of particular stocks.

Next week, he plans propose to the Cabinet an amendment to the Customs Act to provide trade facilities to investors. Laws regarding the Excise Tax Act would be also revised to make it simpler and transparent, he added.

Businesses have long complained that tax officials have too much power due to obscure rules that cause inconvenience and push up the cost of doing business.

Regarding the 3G-licence auction, Korn said though he hoped the National Telecommunications Commission should grant the licenses without delay and the licensing must not affect the state telecom agencies, TOT and CAT Telecom

Many parties hold the view that once granted, licence winners would try to attract customers to use their services to avoid regulatory payments at the expense of TOT and CAT concession revenues. Last year, both agencies received over Bt30 billion in revenues from four concessionaires.

Korn also added that TOT can proceed with its borrowing plans to finance its Bt20-billion investment in 3G services.

TOT's estimates show that with the ministry's loan guarantee, the loan will carry a lower interest rate, shortening the break-even point to 5-8 years from 12 years without the guarantee.

Regarding loans to Cambodia, Korn, said the government had offered three loans to the Cambodian government. For the first two, funds had already been disbursed and the Phnom Penh government is currently making the repayments. While the third loan contract was signed recently, the government has not yet disbursed the funds. " We will reserve the right to disburse the loan," Korn said, referring to the ongoing diplomatic row with Cambodia.