Finance Minister wants to see baht weaken

BANGKOK, Aug 5 (TNA) – Finance Minister Korn Chatikavanij on Tuesday indicated the ministry wanted the baht to depreciate so it could help boost exports and the economic recovery.

However, he conceded it is the duty of the Bank of Thailand (BoT) to supervise the baht movement.

On one hand, he said the stronger baht had negatively affected the country’s exports, but on the other hand, the appreciation of the currency helped ease oil import burdens amid rising fuel prices.

Asked to comment on the private sector’s call for the government to cut the corporate tax, Mr Korn said he harboured the idea when assuming the finance portfolio since he had the view the corporate tax in Thailand is higher than that of neighboring countries.

Still, the economic conditions at that time were not favourable enough to reduce the tax.

“Should the economy signal a recovery, I will consider reducing the corporate tax to 25 per cent from 30 per cent at present as part of efforts to encourage private investment,” he said.

The minister said he had discussed with the prime minister and the energy minister regarding a way to help ease people’s burdens borne by rising oil prices.

“We share a common view if diesel prices increase to hit a ceiling of 30 baht per litre, the government will consider cutting the oil excise tax and contributions to the State Oil Fund to help ease people’s burdens (TNA)