BANGKOK, May 22 (TNA) – Federation of Thai Industries (FTI) chairman Santi Vilassakdanont on Friday expressed support for a proposed revision of the oil excise tax increase, saying efforts to raise the tax now might cause the country’s fragile economic recovery to stumble.
Santi Vilassakdanont
“I agree if the prime minister decides to revise the oil excise tax hike because global oil prices are likely to edge up, which can stoke up local retail oil prices,” he said.
However, Mr. Santi cautioned that an oil excise tax increase would fuel the burdens borne by consumers, that it would cause difficulty for the people. And it could lead the economy to stumble while gradually recovering.
Consequently he cautioned that the oil tax hike should be postponed until the economy recovers more fully.
“Should the economy recover and public confidence be restored, the government’s move to raise any kinds of taxes will not be a problem. But now, he said, “confidence has not yet been fully restored.”
At the same time, an oil excise tax increase would fuel rising transport costs and product prices, and could definitely affect consumer spending.
The FTI chief said he wanted the government to revive measures to encourage the use of alternative energy.
Mr. Santi said he believed the inflation rate would remain low. This year, inflation is forecast to stay at 1-2 per cent because the public continue to reduce their consumption as they are uncertain about the economic recovery.
Regarding the lending rate cut by major commercial banks, he said, it would benefit the private sector as the cost for loan applications would reduce. (TNA)
REF:enews.mcot.net
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