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Measures to reduce the price of diesel B3 and B5 by up to 2 baht a litre for the transport sector have been proposed to Finance Minister Korn Chatikavanij for consideration, Deputy Finance Minister Man Pattanotai said on Friday afternoon.

Mr Man said  transport sector is the lifeline of the Thai economy.

“A reduction of diesel prices would help reduce the transportation costs of manufacturers and, in turn, would be good for the economy,” he said.

The deputy minister said if  Mr Korn approves the idea he would ask PTT to sell about 40 million litres of diesel a month to representatives of  transport businesses at the “in front of the refinery” price.

In exchange for its cooperation, the Finance Ministry would reduce annual income tax for PTT.

The  measure would be given a six-month test run, if approved, said Mr Man.

http://www.bangkokpost.com/news/local/188684/minister-moves-to-cut-diesel-prices

Deputy Finance Minister Pradit Phataraprasit said he had encouraged leading US companies to set up their regional operating headquarters (ROH) in Thailand.

Representatives of nearly 50 giant US firms on Friday morning met with the deputy finance minister to discuss business and investment obstacles.

“The Ministry of Finance will propose new incentives for foreign firms to the cabinet meeting for consideration next Tuesday,” Mr Pradit said.

The new offers, drawn from the seminar on ROH, include zero per cent corporate tax for 15 years and a 10 per cent corporate income tax on income in Thailand, the deputy minister said.

For foreigners working at a regional head office in Thailand, personal income tax would be only 15 per cent for 15 years, he said.

Mr Pradit said his ministry will also offer a tax incentive for the setting up of raw materials and parts procurement centres for affiliates of each foreign parent multinational firm.

“The offers are more attractive compared to those of other countries in the Asian region,” he said.

Thailand would gain a huge benefit from multinational companies setting up ROH because foreign top management would move into Thailand. This would  boost housing demand, domestic spending and the state would benefit from more income tax, said Mr Pradit.

The tourism sector, particularly hotel and restaurant operators, would also benefit as more international events would be organised in Thailand.

It would also open an opportunity for Thai employees for promotion to higher regional level positions, he said.

“This is an urgent task for Thailand because within the next five years the trade barriers in Asean will be revoked and international firms will choose the country they feel most convenient for business  as their regional headquarters.

“Thailand has to move fast, if it wants to maintain its status as the production and service hub of the region,” Mr Pradit said.

http://www.bangkokpost.com/news/local/188676/us-firms-urged-to-set-up-roh-in-thailand

The People’s Alliance for Democracy (PAD) has a constitutional right to rally at the Thai-Cambodian border, but must stay within the law, PM’s Office Minister Ongard Klampaibul said on Friday.

The minister was responding to the declaration by PAD core leaders that they would to lead supporters to rally in the border area against Cambodia’s management plan for Preah Vihear temple.

“The PAD must be careful as the planned rally site is in a sensitive area. A mass gathering there could lead to a misunderstanding between the Thailand and Cambodia,” Mr Ongard warned.

He said the government is not taking its ease over the listing of the ancient temple as a world heritage site. Prime Minister Abhisit Vejjajiva closely followed the matter.

Once Natural Resources and Environment Minister and head of Thai team Suwit Khunkitti returns from Brazil, the prime minister would call a meeting of relevant agencies discuss further action against the temple’s management plan, the minister said.

Chartthai Pattana Party spokesman Watchara Kannika warned that the government should not look on the postponement of the consideration on the Cambodia’s management plan by the World Heritage Committee as a victory.

Instead, the government should keep on working to protect the country’s sovereignty and territory, he said.

“More importantly, the government should put the Thai-Cambodia relations issue on the national agenda,” Mr Watchara said.

http://www.bangkokpost.com/news/local/188667/pad-told-to-be-careful-on-border-rally