From right, Finance Minister Uttama Savanayana, Energy Minister Sontirat Sontijirawong and Industry Minister Suriya Jungrungreangkit (Source: bangkokpost.com)Bangkok (VNA) – Expandingthe Thailand Future Fund (TFF) and tax reform are two priority policies thatwill boost development and help to reduce income inequality, Thai Minister of FinanceUttama Savanayana told the Bangkok Post Forum 2019 on August 5.
Outlining urgent tasks, Uttama said thathefty expenditure now on infrastructure development and public welfare willstrengthen competitiveness in the long run.
To catch up with advances in technology,investment in digital infrastructure is also necessary but is budget-intensive,he noted, adding that the government cannot shoulder all the costs.
To mobilise more capital for thispurpose, the Finance Ministry is set to expand investment by the TFF, one ofthe government's chief financial vehicles for infrastructure development inaddition to the public-private partnership investment policy, he said.
The fund has so far only invested in theChalong Rat and Burapha Withi expressways.
Uttama said his ministry is coordinatingwith relevant agencies, including the Transport Ministry, to find more suitableprojects to put money into.
The fund is Thailand's largest initialpublic offering since 2015, raising 44.7 billion baht during its debut inOctober last year with retail investors' combined subscriptions valued at 28.8billion baht.
The Finance Minister said tax reformwill be another way to raise money to finance infrastructure development and,in the meantime, reduce income inequality.
The Fiscal Policy Office is coordinatingwith the Revenue Department, the Customs Department and the Excise Departmentto reform and improve the country's tax collection system. Many types ofe-commerce and online businesses are among the targets for an expansion of thetax base, according to the minister.
Still, there must be a balance betweenacquiring enough revenue from taxes to take care of investments and adhering tothe principles of fiscal discipline, he stressed.
The e-commerce tax bill is being vettedby the Council of State, the government's legal arm. E-commerce taxes will soonbecome standard, according to Uttama.
Uttama went on to insist that thestrength of the overall economy lies in maintaining the health of thegrassroots economy.
He also pledged to maintain governmentspending on state welfare and continue to empower the elderly to drive thecountry forward. The fund for the welfare of the elderly now tops 400 billionbaht, accounting for 13 percent of last year's national budget, he said.
Uttama also rejected as unwarrantedconcerns raised by investors about the economic direction of the government,which brings 19 parties under the one umbrella.
He said the coalition government willhave no problem in ensuring that its policies, including economic direction,move forward.-VNA
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