Bangkok: Deputy Finance Minister Mr. Paopum Rojanasakul has revealed a strategic initiative aimed at invigorating the Thai economy by leveraging foreign cryptocurrencies. In a recent seminar titled 'Unlocking Thailand's Future.Fighting the Global Crisis', organized by MCOT Public Company Limited, Mr. Rojanasakul outlined the government's plan to negotiate tax benefits that cater to diverse groups, acknowledging that some sectors might experience adverse effects.
According to Thai News Agency, the Deputy Finance Minister highlighted that a team led by Mr. Pichai Chunhavajira, the Deputy Prime Minister and Minister of Finance, is set to engage in discussions with the US Trade Representative to address a 36% reciprocal tariff imposed on Thailand. The focus of these negotiations is to mitigate the impact on Thai exporters and domestic producers, including SMEs and farmers. Mr. Rojanasakul emphasized the government's commitment to finding a balance in trade agreements, ensuring that the benefits of all parties involved are safeguarded.
The proposal includes reducing import tariffs to 0% on several items, while maintaining protection for domestic producers. Mr. Rojanasakul pointed out the necessity of not fully liberalizing the market for the United States, as overexposure could negatively affect local industries. He referenced Vietnam's dual tariff system as a comparative model, stressing the importance of strategic economic planning.
To address the repercussions of US import tariffs, the Ministry of Finance has allocated 200 billion baht as soft loans to support affected sectors. This capital, sourced from state banks, aims to provide low-interest loans to SMEs, retail investors, and the agricultural sector. The Government Housing Bank, Bank for Agriculture and Agricultural Cooperatives (BAAC), and Exim Bank are among the financial institutions tasked with administering these loans to stimulate market expansion and support domestic industries.
In a broader fiscal policy context, the Thai government plans to inject 110 billion baht from the central budget into infrastructure projects such as rural roads and irrigation systems to spur job creation. Additionally, the government is pursuing innovative economic strategies, including attracting foreign investment through cryptocurrencies. This initiative aims to harness Thailand's soft power and foster economic growth beyond traditional budget allocations.