Finance Ministry adds detail on 99-year maximum lease

A large plot of the SRT's land in the heart of the capital likely

to be transferred to the Treasury Department to be rented out

to the private sector for development. (Bangkok Post file photo).

Deputy Finance Minister Wisudhi Srisuphan has clarified

that the government's planned amendment to extend

the maximum lease term for state land to 99 years will not

include renting to the private sector as has been claimed.

The 99-year lease period will be offered only to state agencies,

 he said on Friday.

 Mr Wisudhi said the amendment of the maximum lease

 term to 99 years from 50 was aimed at facilitating the

debt-to-land swap deal by the State Railway of Thailand

(SRT) and the Finance Ministry.

 The SRT will lease its prime land plot in the Makkasan area

of Bangkok in exchange for clearing its accumulated debt

 of 62 billion baht.

Mr Wisudhi brushed aside criticism that the government

 would allow the private sector to lease state land for up

 to 99 years and potentially open up agricultural land to

 foreign investors.

At present, two sets of regulations govern leased land in Thailand.

 The Land Lease for Commercial and Industrial Purposes

 Act sets a maximum lease period for industrial and

commercial use of 50 years with a 50-year renewal option.

The Civil and Commercial Code allows people to lease land

for general purposes for up to 30 years.

 Chakkrit Parapuntakul, director-general of the Treasury

Department,said his department and the SRT would survey

the Makkasan plot to clear any buildings in the area before

the handover.

The SRT will conclude the survey and forward the results

 to the Treasury Department by the second week of February,

 he said.

The debt-to-land swap will seek approval from the State

 Enterprises Policy Commission or superboard chaired by

 Prime Minister Prayut Chan-o-cha and the cabinet before

the lease contract signing.

 The Finance Ministry will lease 497 rai of land in Makkasan

 for 99 years from the loss-ridden SRT in exchange for

clearing 61.8 billion baht of the latter's debt.

The SRT is among seven financially troubled state enterprises

 required by the superboard to undertake business rehabilitation.

 Some 150 rai is to be developed as a public park, with 30

rai for a museum and 317 rai for commercial purposes.

 

Business,BusinessNews,Bangkok Post, 30 January 2016.

 

As Mr Wisudhi said the amendment of the maximum

lease term to 99 years from 50 was aimed at facilitating

 the debt-to-land swap deal by the State Railway of

Thailand (SRT) and the Finance Ministry.

 

So this is special case that should be done between this

two parties.

 

It should not set as new law that will be the obligation to

other parties also.

 

Sincerely Yours.

PM blames past policies for drought

Prime Minister Prayut Chan-o-cha has blamed past policies that

heavily promoted cash crops as a root cause of floods and drought.

Commenting in the latest government's newsletter, Gen Prayut

 said growing cash crops without controls leads to the

 destruction of forests and watershed areas, and even affects

weather patterns, given changes to the environment.

Therefore, his government will stop the destruction with new

 policies aimed at "restoring balance through responsible

water usage".

The premier's comment, made as the country is struggling

against a sharp drop in water in both natural and man-made

 sources, is another effort to convey the seriousness of water

scarcity to farmers and households while at the same time

 providing assurances that authorities have plans to cope

 with shortages.

This government intends to "change agricultural behaviour",

wrote Gen Prayut. He said that farmers will be encouraged

to adopt mixed farming rather than single-crop farming, which

 is common in many crop fields.

 Under a mixed system, farmers can continue growing

cash crops, but they will be urged to mix other crops and

 livestock in the same area.

The government will also impose zoning regulations on

cash crops such as rubber trees, palms, sugar cane and

cassava to restrict their farming.

 In the past, Gen Prayut said these crops were not controlled,

 causing farmers and especially businessmen to expand their

farming into forests, a precious resource that helps the country

 regulate water. Floods and droughts then follow, which are

 "difficult to prevent and thus leave governments as the only

 option to find solutions", he said.

 

Gen Prayut stressed the policies carried out by his government

will mainly serve long-term water management.

 In the short term, he believes there is no better method than

 conservation.

 The Metropolitan Waterworks Authority (MWA), which

produces tap water for Bangkok and neighbouring provinces,

has responded to Gen Prayut's policy by reducing its water usage.

Next month, the MWA will further reduce the amount of water

 pumped from the Chao Phraya River. This will generate

 a 10% savings, said MWA governor Thanasak Watanathana.

His agency is also planning to ask the cabinet to approve

a 45-billion-baht budget for new tap water development.

 The plan includes an increase in water production at Khlong

Mahasawat, a canal that uses raw water from the

 Mae Klong River to produce tap water for the west of Bangkok.

 The objective is to divert tap water from Khlong Mahasawat

 to the east of the capital which relies on tap water from

 the Chao Phraya, currently receiving less water from the

major dams, said Mr Thanasak.

News,Politics,Bangkok Post,29 January 2016.

 

Drought is one of the serious problem in my viewpoint.

 

Agree with zoning the cash crops and provide knowledge

of mix crops to farmers.

 

Long run plan about dam,level ofwater in the dam and water

 provide should analyze and do carefully also.

 

Sincerely Yours.

 

Critics savage 99-year land lease scheme

Criticism has flared over the government's plan to amend

 a law to allow foreign investors to lease state land for up

 to 99 years.

The government earlier said the amendment of the commercial

 and industrial leases in the immovable property act, which

 will extend the maximum lease term for state land from

 50 to 99 years, would help entice foreign investors.

The Pheu Thai Party has insisted the issue should be put up

 for a referendum.

 Chavalit Wichayasut, acting deputy secretary-general of

 Pheu Thai, said the amendment will directly affect people

and the matter needs thorough consideration. It is important

that people's opinions should be gauged through a referendum,

he said, adding it is not suitable for the current government to

 proceed with it.

 "The study must be meticulous since this will affect Thai

people's rights," Mr Chavalit said, adding if an idea has
 to be proposed to bolster foreign investment, it should be
 done by a democratic government, which would have a better
relationship with the international community.

United Front for Democracy against Dictatorship chairman

 Jatuporn Prompan said the issue is delicate and the best way

 is to put it up for a referendum to allow people to decide.

He said the Office of the Ombudsman has stated foreigners

 are using Thai nominees to occupy land in the country and

the office must take this matter up with the government.

 Political science scholar Pramote Nakornthab posted a

 message on his Facebook page against the move.

He said he supported Arthit Ourairat, rector of Rangsit University

 and former house speaker, who said the move is tantamount to

stealing the country's treasures.

 Government spokesman Sansern Kaewkamnerd said the

 administration supported the amendment because a 50-year land

 lease is unattractive to major investors, who require a long time

 to break even, which makes domestic and foreign  investors

hold back from expanding here.

Trade and investment competition will become more intense,

 particularly as the Asean Community has just been launched,

he said.

The country's incentives must be improved to be better or on

 par with other countries, he said.Land in Malaysia and

Singapore can be leased for up to 99 years, in Vietnam for

up to 70 years and in the Philippines, Cambodia and Myanmar

 for up to 50 years, he said.

 He insisted the 99-year land leases will be limited to

 business investments, and the lease contracts can be terminated

 if the lessees breach the law.

The amendment was initiated by state agencies handling

economic affairs, which believe the law needs to be changed

to measure up to international standards and comply with

 the government's policy of strengthening the economy, the

spokesman said.

 He said the government wants all parties to be open-minded,

 insisting the idea would help the country in the long run and

 is not tantamount to handing the country's territory over to

foreigners as some have suggested.

Athip Peechanont, chairman of the Thai Chamber of

Commerce's construction and property business group,

supported the idea which he said would help boost the

 country's competitiveness to be on par with neighbouring

 countries.

It would also solve the problem of foreigners hiring nominees

 to lease land for them, while the government could raise

more tax. However, he insisted 99-year leases must not be

 permitted for farmland.

News,Politics,Bangkok Post,28 January 2016.

 

This is very sensitive case,although the neighborhood land

such as Malaysia and Singapore can be leased for up to

99 years. It does not mean that we should provide rent

long as 99 years too.

 

The analysis of the benefit and revenue gain to the

state should do carefully so that we will not lose

opportunity of the country in the long run.

 

Sincerely Yours.

Election on course regardless of referendum outcome

A general election will definitely be held in July next year

even though the draft constitution is voted down in a referendum,

Prime Minister Prayut Chan-o-cha said on Tuesday.

 A constitution he has prepared will be used, he added

without elaborating which one. "Don't worry about it.

I'll make it happen no matter what." The prime minister declined

 to confirm whether the 2014 interim charter would be amended

or an entirely new one he had in mind will be used.

 “If the draft constitution is voted down and after the election,

 some groups won’t accept the results, you solve the problems

 yourselves.I definitely won’t shoot fellow Thais.”

Asked what will happen if the draft constitution is rejected,

Gen Prayut said: “That’s my business. I won’t say now.

Why did you ask as if you don’t want it to pass? Don’t you

 know the country needs reform? Or do you want it to be

 the same as it was?”

Asked when he is ready to reveal it, the PM said: “I’ll tell

you after the draft charter is voted down. It won’t pass if

 I reveal now.”

The prime minister said he wanted the draft constitution to

 be endorsed. “What’s so bad about it? Don’t you want it to

pass? Are you reporters going to run the country?”

With a referendum on the draft constitution just a few months

 away, public concern is mounting about the consequences of

 a “no” vote, with both charter writers and junta members refusing

 to rule out the indefinite use of the military's interim charter.

And with PM Prayut insisting on Tuesday that an election would

 be held next year regardless of the referendum outcome,

confusion is growing.

 Meechai Ruchuphan, chairman of the Constitution Drafting

Committee (CDC), started the ball rolling on Tuesday when

asked by reporters what would happen if the draft was voted down.

"If the draft is not endorsed in a referendum, we'll be stuck with

 the 2014 interim charter," he said.

 His comment created headlines in many Thai papers, which

took it to mean the 2014 charter promulgated after the coup

 and giving the junta chief sweeping power under Section 44,

would be used permanently.

Law academics, however, noted it was impossible to use the

 interim charter in its current form for the long haul as it doesn't

 contain provisions on several key elements such as elections.

Deputy Prime Minister Wissanu Krea-ngam said on Tuesday

 Mr Meechai might be joking.

"However, it's not impossible if the interim charter is amended.

But what's the point if we have to change or add more than 120

 sections? It's tantamount to drafting a new one," he said.

When a constitution is used as the framework, it doesn't mean

all of its content will be copied verbatim, Mr Wissanu explained.

He confirmed academics' views that the interim charter could

 not be used permanently because it doesn't have sections on

 elections or even the requirement of policy statements after a

government sworn in.

 Mr Meechai also said on Monday there was no need to spell out

 what would happen when thedraft was voted down.

 He reasoned voters won't read its content and judge it for its

 merits if an alternative is laid on the table.

 Agreeing with Mr Meechai, Mr Wissanu said preparing the

alternative in advance was like willing the draft to fail.

"But the junta and the government will have to think how to

deal with such scenario," he said.

"In any case, we have to have an answer to people what would

 happen in the ‘no’ scenario. The answer may come in the form

of amendments to the interim charter.

 But if there's no change to it, rest assured we'll find a way,

only we can't say it now."

 Mr Wissanu urged all sides not to comment on this issue for

now and promised the junta and the government would come up

 with the best solution.

CDC spokesman Amorn Vanichvivat said on Tuesday if the

 draft was voted down, it was possible the junta's charter

would be used.

“The problem is nobody knows what it looks like. So what's

wrong with the draft laid on the table here?"

 The first version of the draft constitution will be unveiled

 on Friday. Among the elements criticised as "undemocratic"

 in it are accomodation of an outsider prime minister,

composition of the senate, unchecked powers of independent

 bodies and difficulties in amending it.

 The referendum on the draft charter, the second in Thai history,

 is expected to be held in the middle of this year.

When it was held for the first time in 2007 for the 2007 charter,

 the powers-that-be also did not make it clear what people

would get if they voted no, only saying the then coupmakers

would pick any of the previous constitutions as they saw fit.

 The draft was endorsed in August, with 57.81% of all 25 million

 cast votes out of 45.89 million eligible voters.

Critics said then it was not a free referendum because martial

law still applied in several areas at the time. Supporters and

opponents of it did not get equal chances to air their views

and freedom of expressions were curbed.

 Most importantly, they said voters had no real choice as they

 did not know what they would get if they turned it down.

News,Politics,Bangkok Post, 26 January 2016.

 

Good news for Thais people that the general election will be

 held in the next July,but still hope  the new draft charter can

 pass the referendum so that this will lead the country to

 sustainable and true democracy we want.

The  public opinions for the draft charter is need before

final and before it go to referendum so that we can get the

 constitution of people by people.

 

Sincerely Yours.

Police arrest pair on illegal fishing charges

Police have arrested the managers of two firms operating fishing

boats which are accused of illegal fishing in foreign waters.

Thanongsak Raksawong and Suwit Thepprasit were arrested

 on Sunday, deputy national police chief Srivara

Ransibrahmanakul said Monday.

Thanongsak is the manager of Siam Tuna Fishery Co, which

operates two fishing boats -- Mook Andaman 028 and

Mook Andaman 018.

 

Mr Suwit is the manager of Sales Service (Thailand) Co, which

 runs three fishing vessels -- Yu Long 6, Yu Long 025 and

Hongsifu 68.

 The managers face charges of sending boats to catch fish in

 foreign waters without permission from the Command Centre

 for Combating Illegal Fishing (CCCIF), which violates

 a National Council for Peace and Order (NCPO) order.

Each offence carries a penalty of up to one year in prison

and/or a fine of up to 100,000 baht. Police are investigating

 whether there was any human trafficking involved on the boats,

Pol Gen Srivara said.

If that turns out to be the case, the managers will face additional

 charges, he said.

 A manager of Three Wonderful Co, which operates a fishing

 vessel called Seribu, also faces the same charges but is still

 at large.

Gen Srivara said the manager, Trairong Nim-anusonsuk, told

 him he would surrender to police Tuesday.

According to Pol Gen Srivara, all six boats were also found

 to have expired fishing licences.

Brought before a police press briefing Monday, Mr Suwit said

 he worked for a Taiwanese company which owns two of the

fishing vessels and he was pleased to cooperate with the

authorities because he was innocent.

He said he would order his crews to bring the firm's two ships

 back to port for further inspections.

 

News,General,Bangkok Post ,26 January 2016.

 

In my viewpoint,in order to meet the EU standard and the

 standard of our country,we should stick with the law.

 

Any firm or anyone who find violate the law should

get  punishment for their guilty so that the violation

of the law will not occurred and wish to be stop in

 the future.

 

Sincerely Yours.

Tariffs on 1,100 items may go

 

 

The Finance Ministry is seeking cabinet approval to waive import
 tariffs on more than 1,000 items, says Customs Department
director-general Kulit Sombatsiri.

If approved, 56 categories of imported goods and a total of
1,100 items will be allowed into the country without tariff,
 Mr Kulit said.

Although the tariff waivers will shrink tax revenue by about

3 billion baht, it will help local manufacturers with their cost

 of materials, especially intermediate types used in the final

production stage of high-value goods.

 Under the current import tariff structure, Customs waives

import duty for goods that local producers require as raw

 materials and capital goods. Intermediate materials or

those in semi-production are charged at 3% and final products

 or ready-to-use items incur 7-10%, depending on the category.

The tariff on intermediate products will be abolished because

those items are materials for value-added products and

government policy is to promote value-added industry to

 strengthen Thailand's competitiveness, Mr Kulit said.

"Some items will be able to ship in without tax," he said.

"Basically, we set the tax rates on import duty for various

 products. Some local producers still require safeguarding

 from imported goods.

" Customs has set a revenue target for fiscal 2016 ending in

 September of 124 billion baht. Despite the proposed tariff

cuts, the department still hopes to meet the target.

 In the first three months of fiscal 2016, Customs collected

 31 billion baht to surpass its target by 1.8%.

Apart from the new tariff rates, Customs is also trying to

 improve efficiency in many aspects of trade facilitation.

 For example, it is applying standard prices to imported goods.

 Goods prices require officials to survey several markets to

ensure that importers are taxed based on fair market prices.

 Standard prices will be applied as base prices to be used at

all eight checkpoints nationwide.

 "This year, we aim to finish the standard prices for the first

36 items, mostly soft commodities such as onion and garlic,

" Mr Kulit said.

"These goods are the most heavily imported items.

" Standard prices applied across the board will help prevent

 mistakes of individual judgement.

Customs is also developing a mobile app for use by checkpoint

officials as a tool for monitoring import-export volume.

 Other changes include a revision to the rule that gives those

transiting cargo to other countries unlimited time for storage

 at the checkpoint depot.

Under the new rule, they can leave their goods before transiting

to other countries for no longer than 90 days. If they fail to

collect their goods within 90 days, the goods will be seized

and become government property.

The move is aimed at cutting Thailand's cost of storage and

 maintenance, especially for used cars, and the government

hopes to make more revenue from the storage space.

News,Business News,Bangkok Post,25 January 2016.

 

 

Agree if the tariff waives for this goods import can help

boost benefit for the value added industry.

And we can gain form the value added industry more than

the tariff tax loss.

 

Sincerely Yours.