Funds for salaries and rental expenses
A government panel pledged yesterday to move ahead with a proposal by retailers and hoteliers at the Ratchaprasong intersection to seek 778 million baht in government support.
The proposal aimed at helping businesses affected by five weeks of red-shirt demonstrations that have paralysed the area would be sent to the cabinet on May 25, said Korbsak Sabhavasu, the secretary-general to Prime Minister Abhisit Vejjajiva.
The funds would go mainly to pay employees' salaries and help businesses cover their rental fees for the month of April, when most were unable to earn any money.
In exchange, the affected businesses would make a commitment not to lay off any workers, he said after chairing a meeting of the panel yesterday.
About 27,000 employees of businesses operating in the prime central Bangkok shopping area have been affected by the forced closures of department stores and hotels since the United Front for Democracy against Dictatorship began occupying the area on April 3.
Employers said they were continuing to pay salaries to their workers.
Salaries at 15 large and medium-sized department stores in the area were estimated at 192 million baht in April.
The businesses told the panel that they employed 12,101 people and generated 5.24 billion baht in revenue in April last year, excluding income from rental fees worth about 38 million baht.
A total of 1,711 small shops employing 10,718 people have asked for 169 million baht for salary payments and 313 million baht to help defray April rental fees.
Ten hotels with 4,373 workers have asked for 66 million baht for salary payments.
The affected hotels reported that they earned 446 million baht in April 2009.
However, Mr Korbsak said the panel had ruled out a proposed exemption from value-added taxes in Ratchaprasong.
Executives of Siam Piwat Co, the operator of the Siam Discovery and Siam Center and a partner in Siam Paragon, proposed on Monday that the Ratchaprasong area should be a VAT-free zone for six months to stimulate spending.
The panel also turned down a proposed tax deduction of twice the expenses used in sales and marketing promotion by department stores, and a three-year corporate tax exemption for hotel operators.
Mr Korbsak said general entrepreneurs would be also affected if those proposals were approved.
Winai Wittawatkaravet, the director-general of the Revenue Department, said the closure of businesses in the Ratchaprasong area had also affected state revenue collection.
The department estimated losses at 400-500 million baht so far.
From : Bangkok Post
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