Thailand announces 49-billion baht anti-poverty package

from the AFP via Google

BANGKOK — Thai Prime Minister Samak Sundaravej on Tuesday announced a 49 billion baht (1.46 billion dollar) raft of benefits to counter poverty caused by soaring living costs.

The anti-poverty scheme will provide tax cuts and free services for six months to Thailand's worst-off, Samak told a news conference broadcast on national television.

The measures for the poor include cuts in taxes on fuel, delayed increases in the price of cooking gas, as well as free tap water, free electricity, and free transport in non-air conditioned trains and buses, he said.

"All the measures will take effect from August 1, except excise taxes cut that will began earlier on July 25," Samak said.

Inflation in Thailand hit a 10-year high of 8.9 percent in June, driven by soaring food and fuel costs, and central bank officials have warned it could reach double digits this month.

Finance Minister Surapong Suebwonglee warned Monday that the country may not meet its growth target of 6.0 percent if global oil prices keep rising.

Samak blamed sharply rising oil prices for the country's economic difficulties.

"The price of oil is a key indicator for economic measures and it suddenly jumped from 100 dollars to 130 dollars recently -- now it has reached 140 dollars. Oil prices are the cause of the problems," he said.

Surapong said the anti-poverty drive would benefit 9.8 million households, saving them 1,000 baht (about 30 dollars) each month.

Under the scheme, the government will subsidise 32 billion baht in tax cuts for diesel and ethanol-blended gasohol.

Around 3.93 billion baht will be set aside for free tap water for 3.2 million households.

The government will spend around 12 billion baht subsidising electricity costs for 9.85 million households.

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