Bangkok - The Thai government on Tuesday announced an
economic stimulus package amounting to an estimated 1.4 billion
dollars in reduced fuel taxes, slashed utility bills and free
transport for the poor.
Prime Minister Samak Sundaravej announced six measures aimed
at cutting costs for the poor including reduced excise taxes on
diesel and bio-diesel fuels, a price freeze on liquified petroleum
gas (LPG) for household use, slashed water and electricity utility
bills for households using minimal amounts, free transport on 800
buses servicing Bangkok and free tickets on third-class seats in the
government-owned train service nationwide.
Samak said the measures, which will go into effect on August 1 and
last for six months, would cost the government 46 billion baht (1.37
billion dollars) in lost revenues. The tax cuts on diesel and
bio-diesel will start on July 25.
As a result of skyrocketing world oil prices and food costs,
Thailand's inflation hit 8.9 per cent year-on-year in May and could
reach double digits this year.
Samak said the stimulus measures were all in keeping with Thai
laws and regulations and would not be withdrawn, despite growing
attacks on his government.
Samak's six-month-old cabinet has been the target of a plethora of
protests and court cases that has already cost him three ministers,
including former foreign minister Noppadon Pattama, who was forced to
resign last week after he was charged with violating the constitution
for signing an agreement with Cambodia to support its listing of a
Hindu temple on the Thai border as a World Heritage Site without
first receiving parliament approval.
'The foreign minister has already committed (political) suicide
and now people still want to put his body in jail,' joked Samak, in
reference to efforts by anti-government groups to impeach Noppadon
and press further charges that might send him to jail.
Samak used the announcement of the stimulus package to criticize
the flurry of protests, censure motions and court cases for stymying
the activities of his government.
The 73-year-old prime minister faces several court cases himself,
including the outcome of an appeal in a libel case that could see him
jailed if he loses the case.
Samak is the nominal head of the People Power Party (PPP), which
won the December 23 general election on a populist platform that
mimicked the policies of the defunct Thai Rak Thai Party that ran
Thailand during 2001 to 2006 under the premiership of Thaksin
Shinawatra.
Thaksin, a billionaire businessman who was toppled by a coup on
September 19, 2006, is widely believed to be the real power behind
the PPP.
USA
Your Talkback on this Story