What's new in business news: September 3, 2013
Water sports to replace drinking & drugs at Full Moon party, inflation falls before price hikes & immediate VAT refund to help small cross-border traders.
Water sports to replace drinking & drugs at Full Moon party, inflation falls before price hikes & immediate VAT refund to help small cross-border traders.
As concerns grow about the soaring cost of living following price rises for cooking gas, electricity and expressway tolls, some restaurants and market vendors are managing to keep food prices unchanged in a bid to keep their customers amid anaemic domestic consumption. THITI WANNAMONTHA
TOURISM
Plans for govt 'Water fun' for Full Moon party on Koh Phangan
The Ministry of Tourism and Sports will introduce new water sports activities to the Full Moon party on Koh Phangan in Surat Thani, as well as boosting security.
The party, held every month on Hat Rin beach near or on the full moon, draws between 6,000 and 14,000 visitors, mostly Western tourists.
However, Minister Somsak Pureesrisak said on Monday the gathering - normally featuring excessive drinking, dancing and drugs - was not in line with local culture.
Mr Somsak said he wanted to include water sport competitions as part of the party and give prizes to the winners.
These activities will help give the party a different atmosphere for party-goers.
Additional security measures would be provided to help ensure safety for tourists at night.
Mr Somsak said the changes would start next month, at the start of the tourist high season.
[Read full story here ]
ECONOMY
Inflation falls before price hikes on weakening demand
Inflation hit a 45-month low in August on falling retail prices of certain fuels, coupled with stable fresh meat prices, cheaper vegetables and sales campaigns by retailers.
Commerce Ministry figures showed inflation based on 450 consumer items slowed for an eighth straight month in August, registering 1.59% year-on-year against 2% in July, 2.25% in June, 2.3% in May and 2.4% in April.
The reading was well down from 3.6% last December, when the rate was its highest since November 2011.
The easing of inflation in August was not a surprise, given steady fuel prices.
The subdued inflation could reflect muted demand pressure and somewhat weaker domestic demand. Thailand's economic growth is losing momentum as a result of tepid demand at home and overseas. The economy slipped into a mild recession in the first half of 2013.
[Read full story here ]
TRADE
Immediate VAT refund to help small cross-border traders
The government allows exporters to reclaim value-added tax after they ship products overseas, but the process takes about 90 days. Traders who import materials into Thailand are also allowed to reclaim VAT.
An immediate VAT exemption in a "free zone" at the border instead of waiting to reclaim VAT makes doing business easier for cross-border traders.
"Free zones" have been set up for eligible exporters to declare tax payments and to import materials into Thailand with a VAT exemption instead of waiting to reclaim VAT.
Local exporters and cross-border traders include big corporations as well as smaller firms, but the free zones are limited to bigger exporters eligible under Customs Department criteria, which include standardised production sites, quality control and accounting standards. Small and medium-sized businesses do not usually meet the stringent criteria.
Full-year cross-border trade is forecast at 1 trillion baht, up from last year's 900 billion baht. Food and consumer goods are the key products exported to regional markets.
Free zones support Asean expansion at a time of depressed export demand.
[Read full story here ]
