Business wants lower tax and more stability

Thai and foreign private business operators want the government to improve political stability and reduce tax to promote investment, which has been affected by the political turmoil in the past few years.

Several suggestions were made yesterday at a seminar titled "Thailand's Investment Environment: Looking Forward", organised by the Joint Standing Committee on Commerce, Industry and Banking and the Joint Foreign Chambers of Commerce in Thailand (JFCCT).

Pramon Sutivong, chairman of the Board of Trade, said the country's investment atmosphere has been cloudy in the past three to four years due mainly to political instability and a shortage of labour.

"In addition, we have to deal with more negative factors such as a drop in consumer confidence and rising production and energy costs. Hence the government should launch more measures to stimulate investment," he said.

Pramon suggested the government reduce the level of corporate income tax because Thailand's neighbours all charged a lower rate. However, it should consider the overall tax system before making changes in order to avoid a negative effect on the government's income.

JFCCT chairman Nandor von der Luehe said political turmoil had slowed down investment in the past two years.

"The government should create political stability, otherwise, it is difficult for foreign operators to predict their future in running a business here," he said.

He suggested the country focus on promoting value-added investment and improving the education system to produce the workforce for technology-based industries in the future.

Moreover, he said, the government should set up a super investment agency with more authority than the Board of Investment (BoI) to oversee the overall investment picture.

The JFCCT chairman said more Thai firms should be encouraged to list on the stock exchange to boost investment opportunities for foreigners.

Deputy Prime Minister and Industry Minister Suwit Khunkitti and the Board of Investment will hold a second meeting with the JFCCT today.

BoI secretary-general Satit Charnjavanakul said the suggestions at yesterday's seminar would be reported to the industry minister.

He said they would also follow up on some issues from the first meeting, such as the extension of work permits and visas and the revision of the Labour Act 2008.