Academic disagrees with tax incentive plan for shoppers

BANGKOK, Nov 3 (TNA) -- An academic disagrees with the government’s plan to offer tax incentives for shoppers to stimulate the economy because it is already recovering regarding its 4% growth. Somprawin Manprasert, chief researcher at Bank of Ayudhya, told the seminar on “Global and Thailand Economic Outlook 2018” that such a shopping-related tax incentive was unnecessary and short-term stimulation could otherwise cause the spending of future money and thus slow down the economy early next year. He said that the economic growth could reach 4% this year, up from the earlier anticipation of 3.6%, thanks to export expansion which resulted in the recovery of six out of ten main industries of the country. Production peaked in six years and benefits from the economic growth should reach more areas of the country next year, Mr Somprawin said. Next year export and government investment would drive the economic growth expected at 3.7-3.8%, he said. Private investment would follow but Thai economic growth rates would be 3-4% yearly pending solutions to structural problems, Mr Somprawin said. He was not concerned about local political issues but said risk factors would come from international conflicts. (TNA)