The cabinet meeting on Tuesday 27, September 2011 has come to the following decision:
The cabinet approved and acknowledged the proposals of the Ministry of Finance as follows :
1. Approved the loan procurement guidelines in order to create revolving fund for the State of Thailand (SRT). The SRT is to loan 1,860 million baht from domestic loan sources and the Ministry of Finance is to the guarantee the loan. The SRT Electrified Train Co., Ltd (SRTET) can then initiate the loan according to Measure 39 (4) of the State Railway of Thailand Act 1951.
2. Approved the Ministry of Finance to guarantee the loan with the amount of 1,860 million baht. The ministry is to consider the loaning process, conditions, and details according to the law and relevant regulations.
3. Approved the condition of the government's interest and the MOF's participation in the stocks.
4. Acknowledged the MOF's opinions regarding business model and commercial income plan of SRTET and assigned the Ministry of Transport and SRTET to proceed with the issues.
5. Acknowledged the result of the government's flat fare system (20 baht throughout the stations).
The cabinet acknowledged the sending of assistance for flood victims by the Ministry of Labour as follows :
1. The MOL set up a center to assist flood victims in the central and regional level. Agencies under the authority of MOL are to monitor the situation and provide assistance according to the missions and measures of the ministry.
2. The natural disaster which has occurred since the end of July 2011 has caused losses and damages to many citizens. The MOL realized that citizens have problems with their career and income. As a result, it has urged agencies under its responsibility to urgently help citizens, employees, and entrepreneurs as well as to organize assistance plan after the water level is reduced.
3. The MOL has considered paying the leftover money after achieving some of the goals with the total of 5,881,524 million baht to assist 11,500 victims in 8 provinces including Phetchabun, Phichit, Nakhon Sawan, Uthaithani, Chainat, Sing Buri, Ang Thong, and Phra Nakhon Si Ayutthaya. The victims will be employed to do community work for 6-7 days and get paid 150 baht a day or 900-1,050 baht a month. This aimed to help them have income during the flood.
4. Projects promoting quick employment and occupational skills have been organized to request for 30 million baht from the allocation of fiscal budget 2012. This will include not less than 75,000 citizens.
The cabinet approved the proposal of the Ministry of Finance regarding tax exempt for citizens who purchase properties either structures with land or condominium units with value not exceeding 5 million baht. They will receive not more than 10% of the value of the purchased properties or 500,000 baht of tax cut. The conditions are as follows :
1. The exempted income tax which does not exceed the actual tax amount paid each year is calculated on the actual amount paid for the property and must not be more than 10% of the property value or 500,000 baht.
2. The tax exemption must be done within 5 years after the ownership has been transferred by paying an equal tax amount for 5 consecutive years and the total must not exceed 500,000 baht.
3. People entitled to this scheme must not own any property and their names have not been or was not registered as “owner” in the home registration unless they can prove that they or their spouse do not own the property.
4. An individual with a spouse is entitled to purchase only one property.
5. Those who are entitled to this tax exemption must never use the house loan interest incurred from loans to purchase, lease or build houses for tax deduction purposes.
6. An individual must never exercise his right of tax exemption for the purchase of immovable assets i.e. buildings, buildings with land, or condominium units as residences as stipulated in the ministerial regulations of 271 (B.E. 2552).
7. An individual must never exercise his right of tax exemption for the sale of his old property to purchase a new one as specified in the ministerial regulations of 241 (B.E. 2546).
With regards to the impact, the Ministry of Finance informed that the issue will affect the collection of tax during the 5 year-period with the total of 12,000 million baht, or 2,400 million baht a year. Not only does the measure help to reduce taxes for first-time home buyers, it also stimulates the overall economy and support people with income to enter the tax system, which will create a strong tax structure for Thailand in the future.
The cabinet approved the proposals of the Ministry of Commerce regarding assistance for in-season rice farmers 2011/2012 who sold the production before the initiation of pawn project and seed compensation for agriculturalists with more than 50% of damaged areas.
1. The Ministry of Agriculture and Cooperatives has estimated the total of 8.8 million farms that were expected to be harvested during August-September 2011, or 4.554 million tons of production (production from the central region averages 554 kilograms per farm while the northern region averages 498 kilograms per farm). The ministry has assessed that damaged areas total 5.232 farms.
2. Compensation for in-season rice farmers 2011/2012 who were affected by the flood or sold the production before the initiation of the pawn project. This includes agriculturists who cultivated the rice in May 2011, harvested it since August 2011 (the government made a statement about the policy to the parliament on 23 August 2011), and sold it during August-September 2011 (before the pawn project began on 7 October 2011).
3. Seed compensation for agriculturalists 2011/2012 who were affected by the flood and faced with more than 50% of damaged areas of the total registered areas. This totals 70%, or 3.662 million farms, of the country's 5.232 million farms. The assistance was given like last year, including the distribution of seeds according to the actual damage not exceeding 10 farms and at the rate of 10 kilograms, or 180 baht, for one person. The overall help will require 659.16 million baht (180 baht/farm x 3.662 million farms).
4. Seed and in-season rice farmers 2011/2012 compensation total 7,203.16 million baht (6,544 million baht + 659.16 million baht). The Bank for Agriculture and Agricultural Co-Operatives was assigned to distribute 6,544 million baht to in-season rice farmers and the Bureau of the Budget is to allocate the budget to compensate the BAAC. Regarding seed compensation, the Bureau of the Budget is to initially allocate fiscal budget of 2011, the reserved budget, with the amount of 659.16 million baht to the Ministry of Agriculture and Cooperatives. Then the Rice Department is responsible for the distribution to farmers.
The cabinet approved the proposals of the Ministry of Natural Resources and Environment as follows :
1. Approved the MNRE to be the main agency for Asian and Pacific Regional Preparatory Meeting for the UN Conference on Sustainable Development and the UN Conference on Sustainable Development 2012.
2. Approved the allocation of fiscal budget 2011, reserved budget, with the amount of 121,904,075 baht for Asian and Pacific Regional Preparatory Meeting for the UN Conference on Sustainable Development in Seoul, Korea on October 2011 and the UN Conference on Sustainable Development 2012 in Rio de Janeiro, Brazil during May-June 2012.
--Cabinet Meeting (Yingluck Shinawatra) September 27, 2011--