BANGKOK: In a major announcement today, a government spokesperson detailed a comprehensive package of financial aids and tax reliefs aimed at assisting flood victims and entrepreneurs across the country. The measures include tax exemptions, low-interest loans, and direct financial assistance to households affected by the recent floods that have impacted over 50 provinces.
According to Thai News Agency, Mr. Jirayu Huangtrakul, the spokesman for the Prime Minister’s Office, outlined the government’s multifaceted approach to aid recovery efforts during today’s cabinet meeting chaired by Prime Minister Ms. Paethongtarn Shinawatra. The cabinet approved a direct payment of 9,000 baht per household to aid flood victims, alongside a broader initiative to restore livelihoods with a 10,000 baht aid per household. Details on exemptions for utility bills in the affected areas are expected to be finalized next week.
The financial relief extends to tax measures orchestrated by the Ministry of Finance, including personal
and corporate income tax exemptions equivalent to the amount of government compensation received. Additional corporate tax relief is provided to companies receiving government aid. The Ministry has also launched a soft loan scheme under a previously approved 50 billion baht credit line. Small and medium enterprises (SMEs) can access these loans at a capped interest rate of 3.5 percent per year over a two-year period.
The Small Industry Credit Guarantee Corporation (BIC) is offering loan guarantees up to 1 billion baht, with individual credit limits ranging from 10,000 to 2,000,000 baht. The Government Savings Bank is supporting existing debtors by pausing principal payments for six months on loans up to 10 million baht, while also lowering the minimum payment rate for credit card holders to 3% for three billing cycles.
For agricultural sector support, the Bank for Agriculture and Agricultural Cooperatives (BAAC) is allowing debtors to extend their repayment periods up to 20 years, with a grace period of up
to three years, and full interest exemption. Additionally, emergency loans of up to 50,000 baht per person are available for enhancing liquidity and necessary consumption, with a repayment period of three years and no interest charged for the first six months.
The Government Housing Bank (GHB) along with Islamic Bank and several other financial institutions are also participating in these relief measures. Plans are underway to introduce further regulatory and legislative support, including potential tax deductions for home repairs and construction in the flood-impacted regions as part of ongoing efforts to alleviate the financial burden on affected citizens.