Thailand plans more tax cuts to boost economy

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BANGKOK, July 14 (AFP): Thailand plans to announce a new economic stimulus package that will include tax cuts aimed at helping the poor cope with rising inflation, which is at a 10-year high, the finance minister said today.

The new measures should be announced after the weekly cabinet meeting Tuesday, Finance Minister Surapong Suebwonglee told reporters. "I cannot reveal the details of this package because it needs approval from the cabinet meeting tomorrow. But the package will not affect individual income taxes or the value-added tax," Surapong said.

Prime Minister Samak Sundaravej will also elaborate on a food stamp project to help the poor as food and fuel prices soar, driving inflation to its highest levels since the 1997 financial crisis, Surapong added.

Inflation hit 8.9 per cent in June, and officials have warned that it could reach double digits this month, driven by high food and fuel costs.

The commerce ministry reported last month that prices for the staple grain rice had jumped nearly 36 per cent compared to one year ago, while pork costs jumped almost 32 per cent.

The Bank of Thailand is widely expected to raise interest rates at its monetary policy meeting Wednesday in a bid to rein in inflation.