Business Tax on Interest Removed

Today the Cabinet approved the reduction of the Business Tax on Gross Interest earned for financial institutions from 3% to 0.001%, which is a de facto way of removing the business tax without amending the Revenue Code.
This is a major victory for me because I have been lobbying for almost 20 years to have this tax removed from financial institutions. The 3% business tax plus and additional 10% of the business tax as municipality tax has been a heavy burden on the Thai financial industry. At 20% interest rate, the business and municipality taxes amounted to 66 basis points of interest. At todays interest rates it is about .25% which is still substantial.
No other country in the world imposes this kind of taxes on financial institutions the cost of which is passed on to the borrowers.
I had lobbied the repeal of this tax when Khun Tarrin Nimmanhaeminda was Minister of Finance, and later on with M.R. Chatumongkol Sonakul when he was Minister of Finance,but without success. Then when I was Advisor to the Bank of Thailand, I had a study team of the young stars at the Bank of Thailand make a presentation of "The Banking Model" which showed all the costs a bank has to take into consideration when acting as a financial intermediary between savers and borrowers. Perhaps that has helped the authorities understand the working of a bank better and to also understand the onus of the business tax. Or perhaps M.R. Pridiyathorn Devakul, the present Minister of Finance, remembered what I told him about the Business Tax from the days when he was a Director of TISCO.

Khun Chumpol Nalamlieng is very happy that his son Kris got married to Kae at the Four Seasons Hotel.

General Somchai and Khun Wannee led the "Kabuan Khanmark" to ask for Khun Thongdul Tanarat's daughter's hand in marriage at the Millenium Hilton.

Nong Or and Big, Tuk and Jack are Khanmark bearers.

Giant Christmas tree at Central World shopping super mall.

Lunch at Shiew.

General Somchai sings a love song.

Teerin sings a song to the amusement of Pavilai and Nok.

Khun Karantarat is a toothpaste advertizer while Khun Thanom sings karaoke.

General Somchai Uboldejpracharak, Member of National Legislative Assembly, leads "the snake" at Siri Sathorn.

We visit Siriphen who has delivered a beautiful and healthy 2.8 Kg. baby girl on Nov. 22 at Phaya Thai 2 Hospital.

Thanksgiving Lunch at The Verandah, Oriental Hotel

Chookiat, Bundit, Sathit, Pichai and the undersigned enjoy a traditional turkey lunch at The Verandah, Oriental Hotel. The set lunch included delicious lobster bisque (which the Pilgrims did not have the pleasure to enjoy), Turkey breast meat slices with tasty stuffing, corn bread, and pumpkin pie followed by expresso and marshmellow sweets.

Pat and Koh host dinner at Tokai Restaurant on Thaniya Road for the USA Trip Group.

Khun Puert is surrounded by wellwishers: Khun Jeab and Tua.

"The BOT Team" hosts joint birthday dinner at Jae Ngor Yaowaraj for Khun Rochana and Khun Puert. Grandma also attends.

Khun Rochana and Khun Puert prepare to blow out birthday candles under close vigilance of Ankana and Dr. Korb.

Congratulatory plaque given by the "Krungthep Kreetah" Golf Club to the undersigned on being appointed Member of the National Legislative Assembly. The event followed the annual members golf championship, with gala dinner and dancing in the new ballroom to the music of the Royal Navy Band. The golf membership at Krungthep Kreetah is now valued at Baht 1.7 million.

Khun Pisit Srettoe, former TISCO legal counsel, comes out of retired seclusion to help with the new draft law on computer crime.

Puvanai (Mon) and Ae sing some songs after getting drunk at Tippawan Thepasdin's 60th Birthday Party at "Chine" Restaurant on Thonglor.

Modern Nine TV interviews Sivaporn about elephants.

Dr. Sumet Tantivejkul chairs the release of 8 elephants at the Sublangka Wildlife Sanctuary by the Wat Paknam group.

Khun Rochana appreciates the "Le SportSac" gift from the USA Trip group.

USA Trip group hosts Thank You dinner for Khun Rochana for planning and arranging the enjoyable trip to the USA at "Harvey", Thonglor.

Sivaporn presents a congratulatory card to Khun Chirapha Pasawongse, the real "nominee" owner of "Harvey" Restaurant, who was on hand to greet us on our arrival to the restaurant.

Khun Noi of TG serves Sivaporn a glass of wine, in attempt to gain favors and promotion from the newly appointed member of the Board of Directors of Thai International.

Coca Cola (Thailand) Ltd. and its bottler, Thai Namthip Co., Ltd., donate one million baht to the Elephant Reintroction Foundation. Dr. Sumet Tantivejkul, Chairman of the Foundation, receives cheque from Pornvut Sarasin, Vice-Chairman of Thai Namthip, and Mr. Jensen, Regional Manager of Coca Cola.

Rochana's Birthday Dinner at Kabuki Jpanese Restaurant, Siam Paragon.

Khun Rochana and Khun Anchalee co-host joint birthday lunch at The Normadie Grill, Oriental Hotel for the "Girls Gang".

Khun Anchalee opens her birthday present.

Dr. Snoh Unakul and Khunying Nongnut visits Sublangka Wildlife Sanctuary.

Prime Minister Surayuth Chulanon makes interim government's policy address at Parliament.

Loy Kratong Floats viewed from "The Deck" Restaurant across the Chao Phya river from Pom Pra Jun.