Ministry prepares stimulus measures to counter tariff

The Finance Ministry is preparing to roll out stimulus measures to offset the negative impacts of US tariffs, while also revving up its regulatory guillotine to enhance the country’s competitiveness.

- WICHIT CHANTANUSORNSIRI

STIMULUS MEASURES

According to Pornchai Thiraveja, director-general of the Fiscal Policy Office, the ministry plans to implement stimulus measures to compensate for possible negative effects from a slowdown in exports.

“If net export revenues decline and affect economic growth, the government is ready to consider measures to stimulate domestic spending and investment to support the economy,” he said.

“These measures may include accelerating disbursement of public investment budgets for various infrastructure projects to stimulate economic activity and create domestic jobs, introducing tax policies to encourage consumption [such as tax deduction programmes for domestic tourism or shopping] to offset the slowdown in foreign demand, and supporting the tourism and service sectors, which are key engines of the Thai economy.”

The government plans to implement these stimulus measures with caution, taking into account fiscal discipline and long-term economic stability, said Mr Pornchai.

TAX EFFORTS

The administration is preparing domestic tax measures to help reduce costs and increase liquidity for businesses. Examples include speeding up value-added tax refunds for exporters, extending deadlines for tax or social security payments for businesses affected in the initial phase, and offering tax incentives for affected companies if they invest in projects to improve production efficiency or adapt their products.

These measures aim to help Thai businesses stay afloat and prepare for competition when the situation stabilises, he said.

The government's Competitiveness Enhancement Fund with a budget of 10 billion baht can also help Thai businesses adapt to changing trade conditions, said Mr Pornchai.