July 2009 : Economic Measures Extended Economic measures extended Tax waiver on deposit interest income Leasing NGV buses not suitable 13 MPs acting illegally Paue Pandin not dissolved More money to tackle 2009 flu 1.4 billion baht loan to Cambodia State of Emergency extended in the South GDP recovering in Q2 Tourism loan extended Economic measures extended On 14th July, the Cabinet extended economic alleviation measures for another 5 months to the end of 2009. These provisions are: Full subsidy for the cost of electricity for 8.5 million small households. Full subsidy for the cost of water supply for 4 million small households. Free non-air-conditioned train for approximately 280,000 passengers per month. Free non-air-conditioned buses within the Bangkok Metropolitan area for approximately 430,000 passengers per day. The maintenance of LPG gas prices for domestic consumption. It is estimated that these provisions will cost the State approximately 11 billion baht. Tax waiver on deposit interest income On 23rd July, the Revenue Department announced a new measure to waive withholding tax on interest income earned on saving accounts of not more than 20,000 baht per annum. The measure applies to holders of single and multiple accounts. In order to get the waiver, account holders can either inform their banks or apply for it when submitting their tax returns. It is estimated that 62 million accounts will qualify for the waiver. Leasing NGV buses not suitable The House Committee on Anti-Corruption disclosed its study on the 4,000 NGV bus- project. The study indicated that leasing the buses is not suitable and alternatives would be to purchase or to hire-purchase because leasing fees were too high. Moreover, projected profit figures were too optimistic. The study will be submitted to the Cabinet as well as to other related agencies, such as, the National Counter-Corruption Commission, the State Audit Commission and the National Economic and Social Development Board. 13 MPs acting illegally On 16th July, a majority of the Election Commission resolved that, under the Constitution 13 Members of Parliament were acting illegally. They are: Suthep Tuaksuban, Surat Thani, Secretary of the Democrat Party and Deputy Prime Minister, Anucha Burapachaisri, Bangkok, Somkiat Chantavanich, Bangkok, Sarawut On-lamai, Chumporn, Thienchai Suwanphen, Tak, Narisa Adithepworapan, Nakorn Sri Thammarat, Samphan Thongsamak, Nakorn Sri Thammarat, Juthi Krareirk, Phitsanulok, Chaeu Ratchasri, Songkhla, Nipa Pringsulaka, Surat Thani, Chalermluck Kepsub, and Trirong Suwankiri. The last two are proportional MPs. At the same time, the EC resolved another 14 MPs not guilty since their shareholdings do not fall into prohibited categories. They are: Sakol Patiyakul, Bangkok, Winai Senneum, Songkhla, Ratchada Thanadirek, Bangkok, Ong-art Krampaiboon, Bangkok, Chalermchai Sri-on, Prachuabkirikhan, Charnchai Issarasenarak, Nakorn Nayok, Abhichart Sakdisek, Nakorn Srithammarat, Kantawan Tanthienkulchanyawiwat, Phangnga, Gen. Picharnmek Muangmanee, Proportionate, Khunying Kalaya Sophonpanich, Bangkok, Songkran Chitsuthipakorn, Nakorn Sawan, Chanin Rungsang, Bangkok, Wichai Lumsuthi, Rayong, and Prakob Jirakitti, Proportionate The EC did not consider MR. Sukhumbhan Boriphat since he resigned his seat on becoming Governor of Bangkok. These EC resolutions arose out of a complaint made by the Opposition, Paue Thai, Party’s spokesman, Supachai Jaisamud. He alleged that 28 MPs and 36 Senators were acting illegally under article 265 and 48 of the Constitution because they had shares in companies that held State’s concessions or in companies involved in media businesses. Previously, on 19th June, the EC resolved that 16 out of 36 Senators were also acting illegally. Paue Pandin not dissolved On 30th July, a majority of the Election Commission voted to dismiss complaints to dissolve Paue Pandin Party because its member, Nopadol Khonsue, Roi-Et MP, committed electoral fraud before he became the party’s executive member. Nopadon was found guilty by the Supreme Court of providing transport for and giving money to voters during the campaign. He was stripped off political rights and barred from running in an election for 5 years. More money to tackle 2009 flu On 28th July, the Cabinet approved a budget of 450 million baht for several agencies whose responsibilities are to control and prevent the 2009 flu. The money will be allocated for: Buying 20,000 Sanamivia anti-virus sets, to be used when patients are immune to Osoletamivia, Public relation through all media, and Buying respiratory aids Moreover, state officials, including school teachers, are to be allowed to stay home to rest for a maximum of 7 days, when they had sore throats even if no temperature. Their absence will not count as leave and they will not need a sick note from the doctor. Private businesses are also asked to comply with this measure. 1.4 billion baht loan to Cambodia On 28th July, the Cabinet approved a Finance Ministry’s proposed loan to Cambodia of 1.4 billion baht to finance the construction of route 68, Korn Arun-Samrong-O Samet. The loan period is 30 years, with a 10 year-grace period for repayment of the principal, but interest at 1.5 percent is payable twice annually. State of Emergency extended in the South On 14th July, the Cabinet approved the National Security Council’s (NSC) proposal to extend of the State of Emergency in the 3 Southern Provinces of Yala, Pattani and Narathiwat, for another 3 months starting from 19th July 2009. This extension is the 15th since it was first applied. The Cabinet also asked the NSC to consider the establishment of a center to investigate complaints of people affected by the State of Emergency and to find ways to adopt the 2008 Internal Security Law instead of martial law in the 4 districts of Songkhla: Jana, Thepa, Na Thawee and Saba Yoi. GDP recovering in Q2 The Bank of Thailand revealed that GDP in the second quarter is improving since it is 2 percent higher than in the first quarter. However, it is still 5.4 percent lower than the same quarter of the previous year. Tourism loan extended On 21st July, the Cabinet approved an extension of the tourism business loan program of maximum 5 million baht per business to those affected by the world economic crisis or domestic problems. The program, ending on 31st of July 2009, will be extended until 30th September 2010.