More Projects and Tax Measures Approved to Help Flood Victims

(06/01/2012)

The Cabinet, during its meeting on January 4, approved more projects involving a budget of 11 billion baht for post-flood rehabilitation. It also endorsed additional tax-relief measures to help people affected by the recent flooding. The 11-billion-baht budget was proposed by the Flood Recovery and Restoration Committee on Infrastructure, headed by Deputy Prime Minister and Interior Minister Yongyoot Wichaidit. Out of the budget, 5.69 billion baht was allocated for the rehabilitation of transport infrastructure, 3.2 billion baht for the irrigation system and reservoirs, 1.38 billion baht for rebuilding schools and other educational institutions, and 137 million baht for renovating religious structures and historical sites. As for tax measures, the Cabinet approved ministerial regulations, proposed by the Ministry of Finance, to assist and rehabilitate flood victims. In the first measure, affected people will be entitled to tax deductions of up to 100,000 baht for repairing homes damaged by floods from 25 July to 31 December 2011. The property must be located in disaster zones declared by the Government. The second measure offers tax deductions of up to 30,000 baht on auto repairs. Damage to the cars must have been caused by the flooding from 25 July to 31 December 2011, and the owners must be residents in declared disaster areas. Deputy Finance Minister Boonsong Teriyapirom said that the recent flooding caused huge damage to property, and a large number of people in many areas suffered a great deal. The Ministry of Finance, through the Revenue Department, previously issued tax measures to ease the burdens of flood victims. The additional tax-relief measures, approved by the Cabinet on January 4, would further reduce costs for the affected people. According to the Revenue Department, the Government is likely to lose about 4.12 billion baht in revenue for tax deductions on home and auto repairs. However, it wants to bring about quick recovery to the affected people. After they have returned to their normal life and resumed their economic activities, the Government will then be able to increase earnings from tax collection in the long run. At the same Cabinet meeting, Prime Minister Yingluck Shinawatra heard a report on the flood situation in southern Thailand. The report said that eight factories and one mine had been damaged. Defense Minister General Yuthasak Sasiprapa said that the military was ready to provide assistance and deal with the situation at any time. The Prime Minister instructed all relevant agencies to urgently ease the situation, give warnings to the people, and prepare for emergency evacuation, if necessary. The Ministry of Natural Resources and Environment was told to come up with short-term and long-term solutions to the problem. Relief supplies and medical mobile units have been sent to help flood victims in Songkhla, Phatthalung, Nakhon Si Thammarat, Surat Thani, Chumphon, Narathiwat, Pattani, and Yala.