The cabinet meeting on Thursday 25, August 2011 has come to the following decision:
The Cabinet acknowledged the summary of flooding situation as of 23 August 2011 by the Ministry of Agriculture and Cooperatives, covering damages on agricultural products, aids offered to the agriculturists and flooding situation. The gist is as follows.
Due to impacts from the storm Nock Ten from the end of July and the current intertropical convergence zone in the northern and northeastern regions moving to low pressure in the South China Sea as well as the southwest monsoon over the Andaman Sea, it would bring heavy rainfall and scattered rain in some areas. This would cause agricultural effects to 44 provinces, which were Kampangpetch, Chiangrai, Tak, Nan, Nakornsawan, Payao, Pichit, Phitsanulok, Phrae, Petchaboon, Lampang, Lampoon, Maehongson, Sukothai, Uttaradit, Utaithani, Kalasin, Bungkan, Nakornphanom, Mukdaharn, Yasothorn, Roi-ed, Leoi, Sakolnakorn, Nongkai, Nongbualampoo, Amnatjaroen, Udornthani, Ubonratchathani, Bangkok, Chainat, Ayutthaya, Lopburi, Singhburi, Angthong, Chachoengsao, Trad, Nakornnayok, Prachinburi, Rayong, Prachuabkirikhan, Ranong and Chumporn.
Agricultural impacts (As of 23 August 2011)
Planting 379,698 agriculturists and 3,223,275 rai were impacted, dividing into rice for 2,873,602 rai, farm plants 254,486 rai and for were impacted, garden plants and others for 95,187 rai.
Fishery 42,931 agriculturists and 45,931 fish ponds, 493 rai of shrimp, crab and shell farms and 62,522 square meters of floating baskets and cement ponds were affected.
Farming 32,681 agriculturists and 2,033,485 were affected, divided into 40,947 cow and buffalos, 39,694 pigs, 358 goats and sheep and 1,952,486 poultries and 3,326 rai of grass farms.
Flooding was still covering 20 provinces, which were Nan, Sukothai, Tak, Phitsanulok, Uttaradit, Pichit, Petchaboon, Nakornsawan, Ayutthaya, Angthong, Nakornphanom, Sakolnakorn, Mukdaharn, Amnatjaroen, Ubonratchathani, Roi-ed, Kalasin, Yasothorn, Nakornnayok and Prachinburi.
The Cabinet acknowledged the progress of 2011 measures provided to flood victims as proposed by the Ministry of Finance. If there were any cases of measure implementation that needed budget request, the relevant organization must propose to the Cabinet for further approval.
Summary
The Ministry of Finance reported that
1. Thailand had been affected by the storm Nock Ten since July 2011 until now. It caused flash flood over 27 provinces which caused severe damages to a large number of agriculturists, people and entrepreneurs. Aids had been provided timely and urgently.
2. The Ministry of Finance reviewed and determined measures to assist the flood victims as follows.
2.1 Financial measure
Financial measures had been directed to 8 specialized financial institutions, namely, Bank for Agriculture and Agricultural Cooperatives, Government Savings Bank, Government Housing Bank, Small and Medium Enterprise Development Bank of Thailand, Islamic Bank of Thailand, Export-Import Bank of Thailand, Small Business Credit Guarantee Corporation and Secondary Mortgage Corporation and Krungthai Bank Public Ltd. This was to help the existing clients of the banks in terms of debt freezing, extension of debt settlement, reduction of the interest rate, offering loans to new clients and the public for vocational rehabilitation and fixing damaged houses and buildings with the lower rate of interest and reduction of criteria.
2.2 Aids from Central Account Treasury Office
Urgent assistances for the flood victims, according to the Regulations of the Ministry of Finance regarding the emergency budget to help disaster victims of B.E. 2546 and the additional clauses, the Central Account Treasury Office could help the state to be able to operate and provide assistance to the flood victims more efficiently. The emergency budget had been approved and increased for the provinces encountering severe disaster in order to provide broad range of aids to the flood victims as followed.
2.2.1 Sukothai at the amount of 200 million baht, totally 250 million baht
2.2.2 Phrae at the amount of 200 million baht, totally 250 million baht
2.2.3 Uttaradit at the amount of 150 million baht, totally 200 million baht
2.2.4 Tak at the amount of 50 million baht, totally 100 million baht
2.3 Tax measure
2.3.1 The victims, both persons and companies or limited partnerships, were exempted income tax for compensation from the state.
2.3.2 The flood victim that was the person and the entrepreneur (with income according to measure 50 (5) to (8) of the Revenue Code), who had registered with the centre of organization providing assistance of the state, was also exempted the income tax equally to damages value.
2.3.3 The company or the limited partnership that had been affected by the floods and received indemnity from insurance was exempted the income tax for indemnity from insurance to compensate the damages that were over the cost value of the assets after deducting breakage or depreciation rates.
2.3.4 Donations to the flood victims through state units, government agencies, organizations, public charity organizations or private organizations that were agents to receive donated items and registered with the Revenue Department to distribute them to the flood victims could be deducted as an expense for tax reduction purpose but not over 2 percent of the net margin (For the case that the donators were companies or limited partnerships and the donations could be made in the form of money or belongings) and not over 10 percent of the revenue (For the case that the donators were personal and the donation was made in the form of money only). The monetary donation and donated items were exempted from revenue, however, it must not exceed the value of damages.
2.3.5 The Ministry of Finance would review and extend the closing date for tax payment form submission to the Revenue Department in some areas encountering severe flooding as appropriate and necessary.
--Cabinet Meeting (Yingluck Shinawatra) August 25, 2011--