Thailand needs to develop a countrywide integrated e-payment system to encourage people to pay more electronically and to reduce costs, according to Finance Minister Apisak Tantivorawong.
Most people use cash as the major payments means but there were high costs involved in getting cash into people’s hands such as those on ATM machine installation and refilling, banknote printing, etc.
All related private and public agencies have already met to set the goal of having all registered shops in Thailand accept electronic payments. Cash top-ups for e-payment cards would be made easier by allowing card holders to use their 13-digit identification numbers at banks or convenience stores.
E-payments will also help the government focus their aid on low-income earners as registering them is difficult now. "If the system is implemented, only eligible people will get the assistance," he said.
“For example, low-income earners may use e-payment cards for a free bus ride and the system will know instantly whether they are eligible. The system will also help reduce tax evasion since each time the card is used, the value-added tax will be calculated automatically,” said Mr Apisak at Post Forum 2015 on Rebuilding the Thai Economy: Meet the Economic Team on Thursday.
With a more effective means to collect taxes, the government would be able to proceed with tax reform, which involves tax category consolidation and reduction of personal income tax of which highest rate is now 35%.
He said the cabinet had already made the 20% reduced corporate income tax permanent to improve the country's competitiveness but the personal income tax should be cut as well because investors would take it into consideration when they pay their staff.
Mr Apisak said the ministry also wanted to establish the one-account practice for entrepreneurs.
Many Thai startups are known to keep two books, one to show officials and the other for their real use. While tax evasion is illegal, authorities may have measures to help them start fresh so they could expand the tax base in the long run.
Also speaking at the forum, Transport Minister Arkhom Termpittayapaisith said transport infrastructure development was not intended as a short-term economic stimulus but for long-term development.
He said the five-year vision for Thailand included a more balanced economy with more active provincial economies, especially border provinces. The transport network would be more convenient and services would be improved while e-payments will be used in mass transport.
Mr Arkhom said the ministry was responsible for driving infrastructure development with cross-border connectivity to support industrial growth. Six lines of dual-track railway and inter-city trains would be built in cooperation with China and Japan.
Information and Communication Technology Minister Uttama Savanayana said the ministry aimed to drive the country's digital economy by adding digital community centres to disseminate information and helping local shops move to the e-commerce platform.
The ministry will also consolidate the several e-commerce platforms created by different government agencies such as at the ICT, industry and commerce ministries and link it to the planned e-payment system.
He said the ministry would also improve the data highway to help entrepreneurs reduce costs and innovate as a study showed every 10% increase in broadband internet would boost gross domestic product (GDP) by 1.35%.
The ministry will try to facilitate access to state services. People using about 100 popular services of seven ministries would no longer need to present a copy of their ID cards to the officials.
Banyong Pongpanich, a member of State Enterprises Policy Commission, said the country's 56 state enterprises need reforms, not only to solve their immediate problems but also to institutionalise transparency and work efficiency.
Of the total, 44 state enterprises under various ministries would be required to disclose their performances using the same standard as listed firms. A new agency will also be set up to supervise the remaining 12 state enterprises which were privatised into public companies.