TAX CUT ON LOCALLY MADE AIR-CONS GIVEN GREEN LIGHT AT PPP MEETING

       The Public-Private Partnership (PPP) yesterday approved a tax waiver for locally manufactured air-conditioners with a capacity not exceeding 72,000 British thermal units, which will reduce prices by 10 per cent.
       Deputy Finance Minister Pruttichai Damrongrat said the move was aimed at promoting competition, although the government would lose around Bt1.7 billion per year from the tax cut.
       He said the lower prices should encourage people to opt to buy more locally made air-conditioners.
       This means the government will gain more value-added tax to help offset the revenue loss.
       Scrapping the tax has yet to be approved by the Cabinet.
       The PPP, chaired by Prime Minister Abhisit Vejjajiva, also acknowledged proposals from the private sector to reduce or waive other taxes, ranging from individual and corporate income tax to property taxes.
       The premier asked the Finance Ministry to work with agencies to consider the proposals on tax cuts and their impact.
       Besides agreeing to the tax waiver for air-conditionerss, the meeting approved in principle proposals to help the construction industry, including measures to boost jobs and income distribution inthe sector.
       A proposal for a two-year construction industry development plan was also approved.
       A proposal for a two-year construction industry development plan was also approved.
       The Finance Ministry will work on short-term measures, while the National Economic and Social Development Board will work out a long-term plan with state agencies.