Poor people will get free electricity and water and excise taxes on gasohol and diesel have been slashed in a government economic stimulus package announced yesterday.
The handouts and tax breaks will last six months, until state spending on billion-baht infrastructure projects can give the economy a jump start.
They start on August 1, except for the fuel tax cuts that take effect next Friday.
They are expected to cost Bt46 billion.
PM Samak Sundaravej told the country in a television broadcast the moves will "help reduce the burden of low-income earners".
The gasohol and diesel tax reduction is Bt1, reducing the taxes to Bt2.30 a litre and the government expects prices to come down by Bt1.
The government decided not to remove subsidies on household cooking gas. It says prices will remain at today's level.
The government will pay water bills for low-income households that consume fewer than 50 cubic litres each month. It will do likewise for households that consume fewer than 80 units of electricity a month.
For those using up to 150 units a month, the government will pay half.
Provincial Electricity Authority chief Adisorn Kiatchokewiwat believes it will cost Bt7.1 billion to meet this promise.
"The measure will benefit around 9.5 million households," Adisorn says.
Free bus and train rides
Bangkok's worst off will get free public transport on non air-conditioned buses. In all, the poor can ride about 800 buses plying the capital's streets for free.
The state will reimburse the bus companies. It expects the Bangkok Mass Transit Authority to shoulder losses of Bt1.4 billion.
Third-class train seats to all destinations will be paid for by the state.
"The excise measures should be an incentive to boost consumption of alternative fuel and the Energy Ministry will ensure supplies of biodiesel and gasohol are sufficient," says Energy Minister Poonpirom Liptapanlop.
--Xpress/The Nation 2008-07-16
