New Thai government cuts diesel taxes, waives visas for Chinese tourists to spur economy

THAILAND’S new government on Wednesday (Sep 13) approved several measures aimed at boosting the economy, including a cut to the diesel tax, a visa-free entry programme for Chinese tourists and a suspension of debt payments for farmers.

Prime Minister Srettha Thavisin, who only came to power last month, inherits an underperforming economy struggling with weak demand for Thai exports and lower investor confidence after months of political turmoil.

He told reporters the fuel price cuts would bring diesel prices below 30 baht (S$1.14) per litre from Sep 20 until the end of the year, and also said that electricity bills would be lowered.

The government will allow visa-free entry for visitors from China and Kazakhstan from Sep 25 to the end of February.

“It’s a temporary waiver to see the impact. I’ve discussed this with all sectors, including security...so that they are prepared,” Srettha said.

Chinese visitors accounted for about 28 per cent of tourists to Thailand in pre-pandemic 2019. Srettha said there was increasing interest from people in Kazakhstan in visiting Thailand.

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The government also approved a measure that will allow farmers to suspend debt payments for three years.

Deputy Finance Minister Julapun Amornvivat told reporters the government did not plan to hike the value-added-tax and would keep it at its current rate of 7 per cent for a year.

Srettha said on Tuesday he aims to introduce new policies as soon as possible, including hiking minimum wages. REUTERS