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The Finance Ministry has denied it will raise the Value-Added Tax (VAT) by 3% to reserve more money for elderly savings.

Ministry spokesman Pornchai Theeravej said the ministry has no plan to increase VAT from the current 7% to 10%.

Mr Pornchai, who also directs the ministry’s Fiscal Policy Office, was responding to reports that a raise was being considered by the ministry to fund elderly savings.

On Friday, Worawan Plikhamin, deputy secretary-general of the Office of the National Economic and Social Development Council, told a seminar that various models for elderly savings were being discussed at the ministry.

One model, proposed through the council and the Social Reform Committee, suggests raising VAT to 10% via a special law. The increment would go to an elderly fund to be used during retirement.

Ms Worawan said that normally, a VAT hike is bound to spark public opposition. However, it was believed that such a tax increase would boost elderly savings and eventually be accepted by the general public.

She said people would enjoy greater financial security in their old age while the government would also have a clear source of income to create a safety net for the elderly. Financial security will become increasingly vital in the future as the elderly population grows, she said.

Ms Worawan added the government’s proposed replacement of the universal welfare payment with the elderly allowance scheme should come with a clear set of criteria to establish who would be eligible.

The government has defended its new requirements for those receiving the elderly allowance, a move that replaces universal welfare payments for seniors. It said universal welfare payments were too great a burden on the state coffers and that some targeting is needed.

Ms Worawan said that before the criteria are introduced, the government must ensure they are suited to the needs of the elderly.

She said a survey of incomes earned by the elderly showed that 34% were retirees who still worked, including those below the poverty line.

Most had an income of less than 100,000 baht per year and relied on financial support from their children or the monthly old-age allowance, Ms Worawan said.

Focus on welfare, not pay, experts say

Labour advocates are urging the new government to focus on protecting workers’ rights and finding a solution to control the prices of consumer goods before raising the minimum daily wage to 600 baht.

As part of its election campaign, the Pheu Thai Party pledged to raise the nation’s daily minimum wage to 600 baht, along with a 25,000-baht a month starting salary guarantee for graduate workers.

However, now that the party has formed a government, labour advocates are saying the administration needs to focus on improving access to welfare benefits as it settles down to work.

Chalee Loysoong, deputy chairman of the Thai Labour Solidarity Confederation, said the new government needs to work harder to protect workers’ rights and safeguard their general welfare. The government should focus more on controlling the prices of consumer goods to help low-income earners, he said.

Meanwhile, Wichai Narapaibul, manager of the Thai Labour Museum, said Pheu Thai’s wage policy might be difficult to implement.

He said it is more important to have a system that promotes improvements in labourers’ skills, which will in turn help them improve their quality of life.

As such, he said, the government should not focus on promoting Thailand as a source of cheap labour for basic industries, but as source of skilled labourers capable of manning advanced industries.

Sanan Angubolkul, chairman of the Thai Chamber of Commerce, said the new government needs to focus on reining in utility prices.

Employers have also voiced their concern about the minimum daily wage pledge, with some fearing they might not be able to sustain their businesses once the new standard comes into effect.

Direk, 71, who owns a stationary shop in Phimai district, Nakhon Ratchasima, said the policies benefit foreign migrant workers instead, as a significant chunk of Thailand’s daily labourers come from neighbouring countries.

“Those migrant workers send their earnings back to their families in their hometowns, so it will not help stimulate the economy,” Direk said.

He said the policy might lead to inflation, which would harm low-income earners even more.

Yupin, a restaurant owner in Pathum Thani said she fears the new daily minimum wage rate will add to her operating cost.

The Thailand Consumers Council (TCC) is urging the Food and Drug Administration (FDA) and the Department of Fisheries to tighten measures on imported seafood from Japan after several countries banned the products following the release of treated radioactive water from the crippled Fukushima nuclear power plant.

TCC official Panuchot Tongyang yesterday said China, Hong Kong and South Korea have suspended imports of Japanese seafood including live sea animals, frozen and dried seafood, sea salt and seaweed due to concerns about contamination.

Mr Panuchot said the radioactive material from the nuclear disaster in 2011 shut down Fukushima, and other adjacent cities were reported to have experienced abnormal radioactivity levels, making seafood unsafe to eat, despite assurances to the contrary.

“The FDA and the Department of Fisheries should impose precautionary measures as concerns have grown that consumers might face contaminated seafood,” he said.

Mr Panuchot also suggested that state agencies advise the public about safety steps they can take when buying seafood. “Even though side effects from contaminated food are not instant, long-term health impacts are possible,” he added.

Meanwhile, the FDA is maintaining a wait-and-see stance on the matter.

FDA deputy secretary-general Lertchai Lertvut said the FDA and various agencies will double the amount of seafood samples collected for testing to boost consumer confidence.

He said the first batch of Japanese seafood after the wastewater release will arrive in mid-September and will be inspected by both FDA and fisheries officials.

Former prime minister Thaksin Shinawatra can seek a royal pardon, according to a corrections authority. However, opponents object to him making such a request due to his open lese majeste case.

Nastee Thongplad, chief of Bangkok Remand Prison, yesterday said Thaksin, like all convicts, has the right to seek a royal pardon but his relatives must present adequate reasons to back the request.

He said a petition for a royal pardon begins at the prison and is then forwarded to the Department of Corrections.

Afterwards, the petition will go to the Justice Ministry, the cabinet secretariat and the Office of His Majesty the King’s Principal Private Secretary, which will propose it for royal consideration, he said.

There is a form for applying for a royal pardon and a petitioner will need to present other documents to show the petitioner’s past contributions and medical treatment records, he said.

He said that up to 10 visitors will be allowed to see Thaksin at the Police General Hospital from today onwards.

Meanwhile, the Thakpakdee Party said it objects to Thaksin applying for a royal pardon because he has yet to be tried over his lese majeste case.

According to the party, the army accused Thaksin of violating Section 112 of the Criminal Code, also known as the lese majeste law.

The Criminal Court accepted the case for trial in 2015 and issued an arrest warrant for Thaksin but he did not appear at the court as ordered, the party said.

Thaksin returned to the country on Aug 22 following 15 years of self-imposed exile. The Supreme Court has ordered him to serve eight years in jail for his finalised legal cases.

During the first night of his stay at Bangkok Remand Prison he was transferred to the Police General Hospital. The management at the Police General Hospital have denied that authorities did Thaksin a favour or that he is getting special treatment.

A father is demanding justice for his eighth-grade daughter who suffers from potentially life-threatening rhabdomyolysis following a disciplinary punishment ordered by her teacher in Roi Et.

The story of the girl, identified only as Lalida, from a local school in tambon Klang of Selaphum district, was first exposed on social media by popular webpage “Yak Dang Diew Jad Hai (Limelight Generator) Return Part 6”.

Sermvit Singha, 60, the girl’s father, said his daughter remains unwell as the condition, which involves the breakdown of injured skeletal muscle, has left her unable to walk and confined to her room at home.

He says Lalida was made to do 100 squat jumps by her physical education teacher last Monday as punishment for not bringing a badminton racquet to school.

The girl sustained a muscle injury during the jumps but did not tell her parents about it. She took a pain killer and went to school the next day.

However, by Thursday the pain had worsened and became intolerable. And when she finally told her parents about the injury they took her to hospital immediately.

Mr Sermvit also uploaded a doctor’s diagnosis confirming rhabdomyolysis and warning about potentially fatal complications that might arise from damage to her kidneys as a result.

Doctors advised the girl be admitted to hospital and placed under observation. However, the girl refused and asked to be cared for at home.

After the girl’s ordeal went viral, the school director and the PE teacher who ordered the punishment visited her at home and offered to pay the family some compensation in exchange for removing the original post.

The family remains concerned the girl’s illness might deteriorate further and Mr Sermvit has insisted he will not pick up any compensation from the school until Lalida is completely cured.

The father said he heard the PE teacher often disciplined other students in a similar way.

He criticised the teacher for ordering excessive punishment which he argued has no place in schools.

Mr Sermvit said the school management should consider whether to take disciplinary action against the teacher.

It was reported the school director has reprimanded the teacher already.

Bhumjaithai could take key interior job

Coalition leader Pheu Thai Party will remain in the driver’s seat despite offering the interior minister post to ally Bhumjaithai, according to an academic.

Details of the latest possible line-up of the new cabinet emerged yesterday, with Pheu Thai tipped to take control of key ministries handling economic affairs as the party aims to use them as a platform to implement its election pledges and boost its popularity.

According to the line-up, Bhumjaithai leader Anutin Charnviralkul is tipped to serve as a deputy prime minister as well as interior minister while deputy Bhumjaithai leader Chada Thaiset may become a deputy interior minister.

Stithorn Thananithichot, director of the Office of Innovation for Democracy at King Prajadhipok’s Institute, told Bangkok Post that Pheu Thai can still retain an upper hand even if Bhumjaithai gets the post of interior minister.

“In the past, coalition leaders had to keep the post of interior minister for themselves. But this time, Pheu Thai chose to offer it to Bhumjaithai, but Pheu Thai is not at a disadvantage anyway.

“Pheu Thai has to focus on fixing economic woes as a priority. After the economic problems are fixed, the party can then turn its attention to preparing for the next election [with the help of the Interior Ministry and local organisations],” Mr Stithorn said.

Generally, the Interior Ministry is among the most coveted portfolios by parties as it controls tens of thousands of local organisations, which can be enlisted to help build political support.

Citing the latest line-up reported by the media, Mr Stithorn said Pheu Thai would take several cabinet seats available, including those handling economic affairs, such as the commerce, finance, tourism and sports portfolios.

“These ministries are crucial to reinvigorating the economy and boosting exports and tourism.

“Pheu Thai also needs to carry out one of its key election pledges, the 10,000-baht digital wallet scheme. If the scheme succeeds, Pheu Thai can win back its popularity,” Mr Stithorn said.

According to observers, Pheu Thai is seeking to solidify its bases and win back supporters who were upset after the party decided to team up with its former foes — the Palang Pracharath Party (PPRP) and the United Thai Nation (UTN) Party.

Mr Stithorn also agreed with Pheu Thai’s decision to allocate the post of education minister as well as the post of higher education, science, research and innovation minister to its coalition ally.

Bhumjaithai is expected to get the two ministerial posts, according to the latest cabinet line-up which is still taking shape.

Mr Stithorn said Pheu Thai’s decision is intended to avoid pressure from those who are calling for education reform.

“Education reform will be a major issue and it will not be easy for the incoming ministers,” he said.

Mr Stithorn added that the allocation of cabinet seats among members of the Pheu Thai-led coalition is a win-win deal and bodes well for government stability.

He expects the new coalition government to fully serve its four-year term unless Pheu Thai makes critical mistakes. However, Somchai Srisutthiyakorn, a former election commissioner, held a different opinion.

On Facebook yesterday, he said Pheu Thai will lose opportunities if Bhumjaithai is allocated the interior portfolio.

“It will be the first time that a party that won 141 House seats agrees to offer the post of interior minister to a party with 71 seats in exchange for the post of transport minister,” he wrote.

Suriya Jungrungreangkit and Manaporn Charoensri of Pheu Thai are tipped to become transport minister and deputy transport minister respectively, according to the latest possible line-up.

Mr Somchai wrote that Pheu Thai would lose control of regional and local administration because the Interior Ministry oversees local officials, such as provincial governors, which was a big loss for any party.

Moreover, Pheu Thai would lose an opportunity to push for decentralisation, a key party policy, he wrote.

Thai Smile will stop operating flights from Suvarnabhumi airport to Surat Thani airport on Oct 1, in a move that has prompted the provincial governor to ask the airline to reconsider its decision.

Surat Thani governor Witchawut Jinto yesterday said he has submitted a letter to Thai Smile, a Thai Airways affiliate, asking it to keep operating flights between Suvarnabhumi and Surat Thani airports.

He said many people have complained over Thai Smile’s plan to stop operating flights to the local airport on Oct 1, the first day of the high season.

“It’s disheartening that Thai Smile will stop flights between Suvarnabhumi and Surat Thani as it is a very popular route,” he said, adding that many tourists also go on to visit nearby provinces.

He said that during the first six months of this year, the airport served 695,682 passengers, yet last month alone there had been 114,404 passengers via 754 flights.

He said if Thai Smile discontinues the service, there will not be enough flights to serve passengers during the high season.

“We want Thai Smile to reconsider its policy and keep the service to Surat Thani,” he said.

The airline had announced a suspension of the service in 2009, but local businesses and people opposed the decision, prompting the airline to cancel the plan at the time.

Other airlines that fly from Suvarnabhumi airport to Surat Thai include Thai VietJet, while AirAsia, Nok Air and Thai Lion Air fly from Don Mueang airport.

Corrections authorities insist former prime minister Thaksin Shinawatra can seek a royal pardon while opponents object to such a request, saying he was investigated for lese majeste.

Nastee Thongplad, governor of the Bangkok Remand Prison, said on Sunday that Thaksin, like all convicts, had the right to seek a royal pardon and he or his relatives would have to prepare adequate reasons to back the request.

The governor said an application for a royal pardon begins at the petitioner’s prison. Prison authorities will check the written petition and then forward it to the Department of Corrections.

Afterwards the petition will go to the Justice Ministry, the cabinet secretariat and finally the Office of His Majesty the King’s Principal Private Secretary, which will propose it for royal consideration.

There is a form for a royal pardon application and a petitioner will need to present other documents to show his past contributions and medical treatment records.

Mr Nastee also said that visitors would be allowed to see Thaksin at Police General Hospital from Monday onwards. The Department of Corrections is limiting the number of visitors to 10 per day. They would have to register beforehand and were prohibited from presenting any gifts or souvenirs to Thaksin, he said.

Meanwhile, the Thaipakdee Party said it objected to any application for a royal pardon for Thaksin because he had yet to be tried for alleged lese majeste.

According to the party, the army had accused Thaksin in the Criminal Court of defamation and violation of Section 112 of the Criminal Code (the lese majeste law). The court had accepted the case for trial in 2015 and issued a warrant for the arrest of Thaksin, who did not appeared at the court as ordered.

After 15 years of self-imposed exile, Thaksin returned to the country on Aug 22. The Supreme Court ordered his eight-year imprisonment for his previous and finalised legal cases.

On the first night of his stay at the Bangkok Remand Prison, corrections doctors determined that he had to be transferred to Police General Hospital because of his serious illnesses.

The management of Police General Hospital denied authorities had done any favours for Thaksin.