Latest news with #Lavaron
Bangkok Post
4 days ago
- Business
- Bangkok Post
Fiscal 2026 state spending to post little growth
The budget for fiscal 2026 is likely to mark the first year in which government spending will see little to no growth, according to finance permanent secretary Lavaron Sangsnit. Speaking after the signing of a memorandum of understanding (MoU) on data integration cooperation between the Finance Ministry and the Public Health Ministry, Mr Lavaron said the preparation of the fiscal 2026 budget is based on the principle that if government revenues fall short, no additional public debt will be incurred. As a result, the fiscal 2026 budget is effectively the first year in which the government budget will have little to no growth, he said. The draft Expenditure Budget Act for fiscal 2026, currently being deliberated by the House of Representatives, sets total spending at 3.78 trillion baht, an increase of only 0.7% from the previous year. However, relative to the size of GDP, this amounts to 18.9%, down from 19.5% in fiscal 2025. For investment expenditure, the fiscal 2026 budget allocates 864 billion baht, down 7.3% year-on-year. Concerning the MoU on data integration, it calls for the Finance Ministry to work with various agencies to establish a central database or "data lake" to support more effective tax collection, according to Mr Lavaron. For example, if a business is found to have paid unusually low import duties, this will show up as higher profits, enabling the Revenue Department to collect more taxes from that business. The data lake already contains information on 60.8 million people and 600,000 businesses, making it the largest database in the country after the Provincial Administration Department's registry. The compilation includes data such as bank deposits, credit bureau records, insurance, postal information, and citizens' health records. The ministry also plans to integrate data on household electricity and water usage, social security, farmers, and vulnerable groups, enabling the database to be more comprehensive. He said the database can support the implementation of the negative income tax, which the ministry plans to roll out in 2027.
Bangkok Post
05-08-2025
- Business
- Bangkok Post
At least B20 billion set aside for tariff relief
The Ministry of Finance has budgeted at least 20 billion baht for relief efforts to cushion the impact of US tariffs on Thai businesses. Now that the 19% tariff rate on imports from Thailand has been confirmed, it has become more evident which sectors and products would be affected, said Lavaron Sangsnit, the ministry's permanent secretary. He said the relief measures will cover both industrial and agricultural products. For farming, the focus is on reforming the sector to ensure its long-term survival. The key issue in agriculture is the large amount of land and labour used, as yields per rai remain low, causing agriculture to account for only 8% of GDP, said Mr Lavaron. 'If the structure of the agricultural sector remains unchanged, it will not be able to survive,' he said. The government has 24 billion baht remaining from its 157-billion-baht stimulus fund, and the sum could be used to address the impact of the tariffs, said Mr Lavaron. If that amount proves insufficient, the government has allocated an additional 25 billion baht in the fiscal 2026 budget, which begins in October, for further support. Local content questions In a related development, Mr Lavaron said Washington has not yet provided clarity on what proportion of local content will be required in order for products to avoid additional transshipment penalties. Thailand is one of many countries still unsure about the final threshold for local content, he said. Thailand, like many countries, has also pledged to purchase more Boeing commercial aircraft to bring down its trade deficit. Thai Airways International earlier this year signed contracts to procure 45 Boeing jets. Boeing also offered THAI the option to purchase an additional 35 aircraft, Mr Lavaron noted. Finance Minister Pichai Chunhavajira said on Tuesday that the 19% US tariff rate enables Thailand to remain competitive on the global stage. 'This tariff rate allows Thailand to remain globally competitive and retain an advantage over regional competitors,' he said. 'The rate offers an opportunity for Thailand to open the door to global economic expansion.' He said the government is well aware of changes to the global economic rules and structures that require all countries to adapt. In the meantime, it has prepared financial measures, including soft loans, debt suspensions, campaigns encouraging Thais to use domestically produced goods, and budget allocation to accommodate adaptation by both large and small Thai enterprises, said Mr Pichai. One-stop help centre Commerce Minister Jatuporn Buruspat, meanwhile, said the government is opening a one-stop service centre to address the impact of US tariffs this week. Located at the Export Promotion Center on Ratchadaphisek Road in Bangkok, the centre will provide information and support to all business sectors, including agriculture and small and medium-sized enterprises. All related government agencies will be represented at the centre to offer guidance and resolve any issues for entrepreneurs, Mr Jatuporn said.
Bangkok Post
08-07-2025
- Business
- Bangkok Post
Ministry upbeat on new US proposal
Thailand's revised proposal to reduce import tariffs on thousands of US products is likely to be viewed favourably by the US, says finance permanent secretary Lavaron Sangsnit. Mr Lavaron said on Tuesday Thailand submitted a revised proposal to the US Trade Representative (USTR), though the White House may not have seen it yet. He said he was confident that once US authorities reviewed the new proposal, which differs significantly from the initial proposal, they would be satisfied. Meanwhile, the Finance Ministry is preparing to deal with the impact of US President Donald Trump's tariff measures, said Mr Lavaron. A 10-billion-baht contingency fund was allocated in the economic stimulus budget to address these impacts, while 40 billion baht remains in the stimulus budget that could be used to address these effects, he said. Mr Lavaron said he expects the US to impose lower import tariffs on Thai goods than on Vietnamese goods, while Thailand still has time to negotiate following its proposal to slash tariffs on thousands of US imports. "Thailand proposed cutting import tariffs on thousands of items from the US, including agricultural products. For example, the tariff on soybeans would be reduced. However, Thai farmers are not expected to be adversely affected due to high domestic demand, while imports would be managed through a quota system," he said. "Thailand still has time to negotiate with the US before the deadline on Aug 1. If we rush the negotiations, we may not get a favourable deal, unlike Vietnam, which agreed to cut all tariffs. We believe we will receive a favourable response from the US." According to Finance Minister Pichai Chunhavajira, his visit to the US last week to negotiate tax measures with the US ended with the Americans requesting a revised proposal, which the ministry completed, then submitted to the USTR on July 6. However, with the US announcing a reciprocal tariff rate of 36% on Thailand on July 7, it is possible the administration has not yet reviewed Thailand's latest proposal, said Mr Pichai. He said the US has two levels of working groups in this round of negotiations: one for policy and one for technical work. The technical work team has already seen all of Thailand's data, but it needs time to thoroughly analyse the proposal before submitting it to the policy group for consideration, said Mr Pichai.
