The cabinet meeting on Monday, 30 July 2012 has come to the following decision :
The cabinet acknowledged in the principle of the draft of the Regulation of the Prime Minister’s Office on Special Uniform of the Office of the Narcotics Control Board’s Civil Servants B.E… according to a proposal from Ministry of Justice. The aforementioned draft is scheduled to be sent to Office of the Council of State for further examination and implementation.
Gist of the draft of the Regulation of the Prime Minister’s Office on Special Uniform of the Office of the Narcotics Control Board’s Civil Servants B.E…, as follows: The draft indicates types of special uniform of the Office of the Narcotics Control Board’s civil servants.
The cabinet acknowledged tax incentives for promoting Thailand as the world’s commercial and production hub of gem and jewelry, and 3 drafts of the Royal Decree and draft of the Ministerial Regulation as proposed by Ministry of Finance comprising, as follows:
1. Draft of the Royal Decree following Revenue Code on VAT exemption (no…) B.E…
2. Draft of the Royal Decree following Revenue Code on revenue exemption (no…) B.E… and,
3. Draft of the Ministerial Regulation (no…) B.E… following Revenue Code on income tax; the aforementioned draft is scheduled to be passed to Office of the Council of State for further examination and implementation.
Ministry of Finance proposed that the enforcement period of; first, draft of the Royal Decree following Revenue Code on VAT exemption (no. 493) B.E. 2553; second, draft of the Royal Decree following Revenue Code on revenue exemption (no. 494) B.E. 2553; and third, draft of the Ministerial Regulation No. 273 (B.E. 2553) following Revenue Code on income tax had been completed since December 31, 2011. However, the development and promotion of gem and jewelry industry is necessary to be continued in order to drive an effective productivity which pushes Thailand towards the world’s commercial and production hub of gem and jewelry. Therefore, Ministry of Finance proposed an extension of tax incentives period for three years namely from the due date on December 31, 2011 to December 31, 2014.
1. Draft of the Royal Decree following Revenue Code on VAT exemption (no…) B.E… indicates an exemption of VAT for imported products or unpolished gem, ruby, emerald, topaz, garnet, opal, jasper, zircon, chrysoberyl, jade, and similar gems. This exemption excludes artificial products, diamond, pearl, and artificial diamond or pearl. The VAT exemption is provided for importers or salespersons who pay personal income tax, not partnership or group of persons without legal personality. The exemption enters into force from the first day the Royal Decree is enforced to December 31, 2014.
2. Draft of the Royal Decree following Revenue Code on revenue exemption (no…) B.E… indicates an exemption of estimated gem income from being included in the income tax. The exemption is provided for individuals who pay personal income tax, who are not partnerships or a group of persons without legal personality earning from selling unpolished gem, ruby, emerald, topaz, garnet, opal, jasper, zircon, chrysoberyl, jade, and similar gems, excluding artificial products, diamond, pearl, and artificial diamond or pearl, and have been deducted income tax at the payment stop under the rate permitted by law when the date for income tax payment is due. The exemption lasts from the first day the Royal Decree enters into force to December 31, 2014.
3. Draft of the Ministerial Regulation (no…) B.E… following Revenue Code on income tax indicates a deduction of income tax at the payment stop for estimated income acquired from selling unpolished gem, ruby, emerald, topaz, garnet, opal, jasper, zircon, chrysoberyl, jade, and similar gems, excluding artificial products, diamond, pearl, and artificial diamond or pearl. The deduction is for individuals who pay personal income tax, who are not partnerships or a group of persons without legal personality and who are not entrepreneurs with the rights of VAT exemption according to the Royal Decree following Revenue Code on VAT exemption (no. 311) B.E. 2540 under the rate of 1.0%. The deduction enters into force from the first day the Ministerial Regulation is enforced to December 31, 2014.
The cabinet approved the extension of period for car delivery and official document submission for the First New Car project following the direction proposed by Ministry of Finance.
Ministry of Finance followed, took comments from the Office of the National Economic and Social Development Board for implementation, and ordered an inspection, follow-up, examination, as well as implementation imposed upon car purchasers who join the First New Car project, and car purchasers who request for exercising the rights. The project implementation must strictly follow the project’s criteria and conditions.
1. Excise Department has; for 10 months, implemented the First New Car project approved by the cabinet since September 16, 2011. Initially, the project encountered the flood crisis resulting in a 3-6-month halt among automobile factories and car-part industry. However; since February, the number of interested people who join the project has increased. Automobile producers predict that the automobile production in 2012 will exceed 2 million cars, which is a new and highest production number. Moreover, the First New Car project stimulates competition in the automobile industry and increases choices for consumers as seen from a number of ECO-Car products injected into the market such as Suzuki Swift, Honda Brio, Nissan Almera, and Mitsubishi Mirage. This enables Thailand to have Product Champion for another type of automobile industry after the Excise Department was successful in utilizing tax incentives to promote pickup trucks as Product Champion of Thailand.
From September 16, 2011 to July 13, 2012, there have been 93,833 people registering for the First New Car project with the Excise Department. The refund is worth 6,823 million Baht. However, it is expected that the demand for the first car will increase in the second half of the year.
2. From a preliminary survey by automobile production companies, it is expected that there will be approximately 425,000 cars being reserved and fitted with the criteria of the first new car project. Even though the automobile production companies accelerate productivity, cars may not be delivered on the final day of the project (December 31, 2012). As a result, people who register for the project cannot get their cars by the end of this year, and thus cannot submit documents by the period stated above.
3. In order to facilitate the First New Car project and compensate the halt among automobile and car-part factories due to the flood, Ministry of Finance did not agree with extending the deadline of the project, but an extension of period for car delivery and document submission. Directions as follows:
3.1. The applicants must purchase or reserve cars by December 31, 2012, and submit applications and documents by December 31, 2012. Documents as follows: (1) a copy of ID card (2) a copy of house registration document (3) a copy of leasing and permitting contract (if applicable) (4) a copy of the applicant’s bank account (5) a car reservation document (from the day the cabinet launched a resolution to December 31, 2012)
3.2. On December 31, 2012, applicants may fail to receive cars or register with Department of Land Transport within the stated period. As a result, they fail to submit documents by the final day of the project (December 31, 2012). Excise Department thus requests for the delay of document submission; the applicants need to submit documents at the Excise Department or its branches within 90 days after the next day of car delivery.
The cabinet approved a proposal from Office of the National Economic and Social Development Board, as follows:
1. Approving directions and solution orders assigned to ministers working in the Southern Northeastern provincial group areas 1 and 2: totaling 8 provinces. In this regard, the cabinet appointed responsible agencies to provide the project’s details and implement the ministers’ orders.
2. Approving well-prepared, necessary and urgent projects which can immediately be implemented. In this regard, agencies responsible for the projects need to provide details for B.E. 2555 fiscal budget request immediately submitted to Bureau of the Budget.
3. Approving additional comments and orders outside the responsible area of Deputy Minister of Public Health in Ubonratchathani area.
The cabinet approved a proposal from Ministry of Foreign Affairs, as follows:
1. Affirming the cabinet resolution on April 5, 2005, as follows:
1.1. Approving a preparation for an Agreement on Cultural Cooperation between the Government of Kingdom of Thailand and the Government of Kingdom of Morocco
1.2. Appointing Minister of Foreign Affairs or representative authorized by Minister of Foreign Affairs to sign the agreement
1.3. Assigning Ministry of Foreign Affairs to inform the government of Kingdom of Morocco that the government of Thailand has implemented domestic affairs to enforce the agreement
2. In case an amendment of unimportant parts of the draft agreement is needed in order to make it compatible with Thailand’s national interest and policy, Ministry of Foreign Affairs is authorized to implement without requesting for the cabinet’s approval.
Gist of the draft Agreement on Cultural Cooperation between the Government of Kingdom of Thailand and the Government of Kingdom of Morocco aims at promoting cooperation in the field of arts, culture, education, mass communication, youth, and sports.
--Cabinet Meeting (Yingluck Shinawatra) July 30, 2012--