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January 2007 : Constitution Drafting Assembly and Committee
The 100 members of the Constitution Drafting Assembly [CDA] has received Royal endorsement and the 35 members of the Constitution Drafting Committee [CDC] was elected followed by the appointment of sub-committees.
The cabinet on January 16 approved new legislation intended to wipe out corruption by politicians and senior state officials.
The cabinet approved a draft amendment to the Foreign Business Act designed to create a level playing field and transparency among foreign companies doing business in Thailand.
The cabinet on January 23 revoked excise tax on telecom services, revising a policy of the Thaksin administration.
Prime Minister Surayud Chulanont appointed Retired Pol. Gen. Wasit Dejkunchorn to chair a panel on the National Police Agency [ NPA] reform.
A draft amendment of the Higher Education Act will demand university rectors and deans to submit their asset declaration to the National Counter Corruption Commission [ NCCC] , similar to other high rank state officials.
The Private Higher Education Act will establish an endowment public-private fund of 200-300 BtM.
The Ministry of Finance is considering to revise the Land and House Act to cover agriculture land in order to increase local government taxation.
The cabinet approved the extension of state of emergency decree in the three southern provinces and increase of 1200 personals as aid-to-the village chief.
The cabinet approved a draft ministerial regulation to mandate every business of employees exceed 200 to employ a minimum of one disabled person.
The National Public Health Security Commission agreed to increase a 2007 public health allowance to 1,899.69 baht per capita.
The Decentralization Committee to the Local Agencies approved the share of 62,995.05 million baht in 2007 fiscal year to the local authorities.
The cabinet approved three agriculture debt-relief measures.
Charter-drafting panel
The 100 members of the Constitution Drafting Assembly [CDA] has received Royal endorsement and the CDA had assigned 25 to the Constitution Drafting Committee [CDC] to join 10 others chosen on the advice of the Council for National Security [ CNS]. The CDC appointed 3 sub-committees on 1] A sub-committee on rights and freedom, public participation and decentralization to consider on rights and liabilities and decentralization, 2] A sub-committee on political institution to consider on the legislative and administrative bodies, political- bureaucracy relationship, moral and ethics and 3] A sub-committee on constitutional organs and jurisdiction to consider on jurisdiction, monitoring and auditing of state power and ombudsman.
Noranit Sethabutr , former secretary-general of King Prajadhipok Institute was elected chairman of CDA while Prasong Soonsiri was elected chairman of CDC. CDC has to submit first draft of the constitution before April 15 to be distributed to all concerned agencies and the general public for consideration. Feedback are expected for revision.
Anti-graft bill
The cabinet on January 16 approved new legislation intended to wipe out corruption by politicians and senior state officials. The bill provides a maximum punishment of 15 years in jail and a fine up to Bt600,000 for those convicted of conflict on interest, allegedly wide spread during the Thaksin administration.
It will forbid politicians or government officials, and their spouses, relatives or dependants, from bidding for state projects. The National Counter Corruption Commission can halt projects if 5,000 people-or 50 members of Parliament –suspect a conflict of interest.
The bill would be forwarded to the national legislative Assembly, which is expected to consider it by next month.
Foreign business act revision
The cabinet on January 9 approved a draft amendment to the Foreign Business Act designed to create a level playing field and transparency among foreign companies doing business in Thailand.
The amendments require foreign business owners to reduce their voting rights to below 50 percent within one year. For shareholdings, if they own a stake in their own name that exceeds the limit, they have two years to reduce it. If the exceeded limit is held in the name of a Thai nominee, they have one year to reduce it.
Under the amendments, “foreign companies” are defined as those whose shareholding stakes or voting rights exceed 50 percent.
The foreign Business Law covers three lists of business sectors- deemed critical to national security- subject to the degree of protection. The most protective category is Annex 1, followed by Annex 2 and Annex 3.
Industries listed in Annex 1 include rice farming, forestry, agriculture and protected professions such as hairdressing. Annex 2 comprises national security-related sectors such as telecommunications , handicrafts, media, weapondary, ammunition, military equipment, the culture-related sector, environment, transportation, marine and domestic aviation, antique sales, salt farming and mining. Annex 3 includes rice milling, fisheries, forestry, accountancy services, the service business, legal service business, agriculture, engineering and retail.
According to the draft amendments, companies, which operate under Annex 1 and 2 which violate the foreign business law, will be required to revise their shareholding structure and voting rights below 50 percent within a maximum of two years. For foreign companies, which have used nominee to circumvent the ownership law, they must report their true status to the Commerce Ministry and will be required to reduce it but industries listed in Annex 3 category are exempted from the rule.
Telecom excise tax revoked
The cabinet on January 23 revoked excise tax on telecom services, revising a policy of the Thaksin administration.
In 2003 excise tax of 2 and 10 percent were imposed for fixed telephone and cellular services respectively. Revoking of the excise, in regards to Information Communications and Telecommunication Minister Sitthichai Pookaiyaudom was based on the reality that telecom services were no longer a luxury but a basic necessity.
The Thaksin government introduced two royal decrees in early 2003 to impose the telecom excise and later passed a resolution to allow private telecom operators to deduct part of their concession fees to be paid as excise directly to the government, before sharing the remaining fee with the concession owners, TOT or CAT Telecom. Both state agencies, including new telecom entrants licensed by the National Telecommunications Commission [ NTC] , have also been subjected to the excise tax.
As a result of the 2003 resolution, the total regulatory fees of the private telecom firms have remained unchanged but TOT and CAT have suffered a huge loss in concession revenues estimated by both state agencies to be around Bt50 billion. After the revocation all telecom operators will be resumed to paying full concession fees to TOT and CAT.
However, Finance Minister MR Pridiyathorn Devakula said both state agencies could not spend part of the concession fee, to be gained after the new excise rate, on employee bonuses or pay raises. Moreover, the ministry which owns 100 percent of both state agencies, will ask them to increase the revenue proportion they have returned to the ministry each year.
Police reform
Prime Minister Surayud Chulanont, in his good intentions initiated the process to make the National Police Agency [ NPA] independent in their investigations and prosecutions so police should be at the service of the people appointed a 25-man panel, led by Retired Pol. Gen. Wasit Dejkunchorn, to study the reform of the NPA.
The key issues to be reconsidered are ; 1] Public access to participate in policing 2] Shielding police agency from any political interference 3.] Decentralization from central police agency 4] Monitoring and check-and-balance system 5] Promoting professional ethics 6] Restore public confidence, and 7] Improve quality of life and professional career path for low level police officers.
The panel’s recommendations is scheduled to be unveiled on March 13 and undergo a public hearing before submitting to the government for final decision on whether the NPA reform should be legalized or not.
Autonomous university
The Commission on Higher Education resubmitted a draft amendment of the Higher Education Act to the cabinet with a few issues for consideration such as on the university council’s authority to evaluate the university and its executive performances and on the rectors and deans liability to submit asset declaration to the National Counter Corruption Commission [ NCCC] , similar to other high rank state officials.
Moreover, the university must annually earmark a proportion of tuition fees as scholarships for cash-strapped students.
Private university act revise
The Private Higher Education Assembly of Thailand approved a propose to revise the Private Higher Education Act to upgrade its teaching personals to a master degree, establishing an endowment public-private fund of 200-300 BtM etc.
The amendment act will be submitted to the cabinet for consideration.
Land and house act
The Ministry of Finance is considering to revise the Land and House Act to cover agriculture land in order to increase local government taxation. Currently, only land categorized as commercial and residential are liable to taxed while vacant land within locality is also taxed at the minimum rate. Owing to the changed of central government financial support to local government was reduced from target of 35 percent to 25 percent, all local government should find other sources of revenue. However, it should be further considered on the tax rate, whether the rate should be flat or each locality should designate its own rate.
State of emergency extended
The cabinet on January approved the extension of state of emergency decree in the three southern provinces, Yala, Pattani and Narathiwat, from January 20 to April 19. The cabinet also approved the increase of 1200 personals, aid-to-the village chief, in those three provinces and some districts in Songkla province. Currently each village chief has only one aid but four will be appointed to make a total of five each.
More disabled employees
The cabinet approved a draft ministerial regulation principle , submitted by Ministry of Social Development and Human Security, to mandate every business of employees exceed 200 to employ a minimum of one disabled person to any position before January 30 each year.
Health allowance increased
The National Public Health Security Commission agreed to increase a 2007 public health allowance to 1,899.69 baht per capita. It is estimated that total expenditure should be around 1,381.98 million baht.
Local government subsidy
The Decentralization Committee to the Local Agencies approved the share of 62,995.05 million baht in 2007 fiscal year to the local authorities. Among which 10 percent or 6,299.50 BtM will be allocated to provincial authorities, 29 percent or 24,569.63 BtM to municipals and 51 percent or 32,125.92 BtM to Tambon or sub-district authorities.
Farmers debt resolution
The cabinet approved three agriculture debt-relief measures, which prompted the cancellation of protests in Bangkok by farmers from the Northeast.
The first measure is to suspend all litigation on defaulted farm loans with the Bank for Agriculture and Agriculture Co-operatives [ BAAC] until the fund is designated creditor. The bank will also delay the repossession of any land.
Second, the fund will speed up negotiations with commercial banks to resolve problem loans on the farmers’ behalf.
In a final measure, the fund and relevant government agencies will map out a sustainable program to assist farmers repay their loans.
The Agriculture Ministry would dispatch a team of senior officials to explain the debt-relief program to farmers while the Interior Ministry will instruct provincial governors to address the farmers’ worries and reason with them to prevent protestes.
From : http://www.fpps.or.th
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