March 2008 : Senate Speaker and Deputies received Royal Command Senate Speaker and Deputies received Royal Command Budget Deficit is 2.5 billion for 2009 Cabinet approved tax reduction package VAT to stay at 7% until Sept 2010 Thailand more corrupt AEC found 6 guilty on BMA fire-truck purchase Community radio stations to be licensed Bonus of 5.5 billion for state officials Military gets budget increase to 1.8% Increased penalty for human trafficking Number of Extraordinary Parliamentary Committees remains at 32 New Labor Act to be effective on 27th May Eleven ordinances withdrawn Senate Speaker and Deputies received Royal Command The Senate having decided on 14th March, the following people, on the 19th received the royal command of their appointments: Prasopsuk Boondej, as the Senate Speaker, Nikom Waiyaratchapanich as the First Deputy Senate Speaker and Tasana Boonthong as the Second Deputy Senate Speaker. The new Senate Speaker firmly declared that he will perform his role honestly and impartially without allowing political interference, but to act as a senatorial legal expert. Budget Deficit is 2.5 billion for 2009 On 18th March, on the Budget Office’s submission, the Cabinet approved next year’s budget of 1,835,000 million baht expenditure, 1,585,000 million income, making a deficit of 250,000 million or 2.5% of GDP. In spite of signs of economic recovery, the economy has not normalised, and this is the maximum level of deficit allowed. It is expected that maximum deficit will be necessary for the years 2009-2012, but it will not have a negative impact on the country. Cabinet approved tax reduction package On 5th March, the Cabinet approved the Finance Ministry’s proposed economic-stimulus tax package, e.g. Individuals with taxable income of less than 150,000 baht will be exempt from income tax, up from the current threshold of 100,000 baht. Corporate taxpayers with no more than 5 million baht of paid-up capital will be exempt from taxes for the first 150,000 baht of net profit. Additional profits are subject to progressive rates. Companies can depreciate 40% of the cost of machinery and equipment at delivery date for items acquired by December 2010. The special business tax on property transactions, undertaken in a one year period, is reduced from 3% to 0.1%. Tax on registering mortgages is reduced to 0.01 %. VAT to stay at 7% until Sept 2010 On 25th March, the Cabinet approved an extension of Value Added Tax (VAT) at the 7% rate for another 2 years until 30th September 2010. The Cabinet also approved an 18 billion baht small and medium sized lending programme (SML), which would mean an allocation of about 200,0000-350,000 baht to every village nationwide. Thailand more corrupt The Political and Economic Risk Consultancy Ltd. (PERC) disclosed its corruption study amongst 13 Southeast Asian countries. It ranked Thailand and Philippines as the worst, with Thailand in the 12th position and the Philippines 13th. This reflects the 2007 corruption index gathered from 179 countries worldwide, Thailand has fallen to 84th, from 63rd in the previous year. Suggested remedies include: more effective laws i.e., better protection for whistle-blowing witnesses and stronger measures against gangsters; and higher ethical standards i.e., encourage honesty amongst staff and the private sectors should build better leaders who can set good examples. AEC found 6 guilty on BMA fire-truck purchase On 12th March, the Asset Examination Commission (AEC) nullified the memorandum of understanding between the Bangkok Metropolitan Authority (BMA) and Styer Co. Ltd for the purchase of fire vehicles. They resolved to charge six people for their alleged involvement in the scandal. Four were accused of collusion: 1) Styer Co. Ltd. 2) Styer representative, Mac Mario Minor, 3) former Commerce Minister, Wattana Muangsuk, and 4) former Director of Foreign Trade Department, Rashane Pojanasunthorn. Two accused of misconduct: BMA Governor Apirak Kosayodhin and former BMA Secretary, Khunying Nathanond Tavisin. The six can object to this finding by the Commission within 15 days. This was in addition to Prime Minister Samak Sundaravej, BMA Governor at the time, who was earlier charged by the AEC among the first batch of suspects. Community radio stations to be licensed Under the National Broadcasting Act B.E. 2551 (2008), in force since 5th March, community radio stations must now be licensed. It is expected that the process will start within one month after the appointment of 22 Broadcasting Commissioners. Community radio stations were previously non-licensed broadcasters but the Act now requires licenses for three types of radio broadcasters: public, commercial (including national, regional and local) and community. Bonus of 5.5 billion for state officials On 11th March, the Cabinet approved the payment in April of one lump-sum annual bonus to all state officials, instead of the usual two payments. It is expected that the bonus, totaled 5.5 billion baht, will stimulate economic growth as well as reduce financial burden when school term starts. Military gets budget increase to 1.8% On 28th March, the Samak Administration approved the Defense Ministry’s request to increase annual military budget from 1.5% to 1.8% of the national GDP. The Ministry reasoned that Thailand, at 1.5% GDP, has the lowest annual military budget, compared to 2 % for the Philippines and 5% for Singapore. Prime Minister Samak Sundaravej also holds the Defense Ministry portfolio. Increased penalty for human trafficking The Protection and Suppression of Human Trafficking Act B.E. 2551 (2008) in force from 5th June, increased the penalty for a person or persons gaining benefit from prostitution, production or distribution of pornography, slavery, forced labor, begging, trade in forcefully acquired human organs, and all kinds of forced services, regardless of the victim’s consent. Those found guilty of broadcasting or publishing images, voice or personal information of the victim is liable to a maximum prison term of 6 months or maximum fine of 60,000 baht. Moreover, guilty politicians and state officials are liable to double penalties, while those working under this statute and found guilty, are liable to treble penalties. Number of Extraordinary Parliamentary Committees remains at 32 The Committee on Parliamentary Regulation, chaired by Nakorn Panom Province, Palang Prachachon Party MP, Prasong Buranapong, voted to retain the total number of extraordinary parliamentary committees at 32. This follows the merging of similar ones and adding three new ones namely: Committee for State and Public Security, Committee for Enterprises under the Constitution for State, Funds and Public Enterprises, and Committee for Public Protection and Assistance following disasters However, this conclusion, expecting to be submitted for parliamentary consideration by 9th April is liable to be changed, as many members have reserved their rights to submit amendments. New Labor Act to be effective on 27th May The revised Labor Act B.E. 2551 (2008), scheduled to be in force on 27th May, encourages equality among all workers. These include: daily-based employees are to be entitled to same benefits and security as those on contract, sexual harassment complaints can be filed through labor inspectors, to both labor and criminal courts, employers and employees can agree to transfer daily working hours of less than 8 to other days as long as the total hour in any one day does not exceed 9, and employers must pay 75% compensation to employees if the business is closed temporary. Eleven ordinances withdrawn On 25th March, the Cabinet approved the withdrawal of 11 ordinances, many of which were approved during Surayud Administration. Some have been rejected by the Constitutional Court and others were passed by the National Assembly without the requisite quorum.