Stimulus gets mixed reactions

The next phase of the government’s popular economic stimulus programme, “Khon La Khrueng Plus” — which is slated to be launched at the end of the month — has drawn mixed reactions across the country.

The Khon La Khrueng Plus offers an estimated 33 million beneficiaries between 2,000 and 2,400 baht per person, with usage capped at 200 baht per day over a period of up to two months.

The government believes the scheme will inject much-needed funds into the economy by spurring consumption at the grassroots level.

While the initiative has been generally praised by the public, enthusiasm for the next phase of the programme has been significantly tempered by concerns over taxation and the system’s ability to offer timely payouts for workers in the public transport sector, which has just been included in the initiative.

For some merchants, the scheme presents a genuine dilemma, pitting short-term gain against long-term risk.

Merchants fear taxes

In Khon Kaen, many small-scale food vendors readily acknowledge the programme’s benefits.

Anan Thongmaen, a 26-year-old soymilk stall owner, said he was keen to join the programme, calling the scheme an excellent economic boost.

Similarly, Sirimat Sirimuangrat, a grocery stall owner, praised its ability to increase sales and attract new customers.

However, she said that many merchants fear being hit by unexpected tax bills on sales made through the scheme.

“In the previous round, there was an issue regarding retrospective tax collection, even though the condition for collecting tax was not stipulated initially,” she said.

“If the government can assure us that there will be no taxes [on goods sold through the scheme], more merchants would definitely be interested.”

The fear of getting hit by unexpected taxes has caused many small merchants to think twice about signing up for the programme.

Among them is Duangporn Thoranong, a 59-year-old food stall owner who said she was hesitant to join this round because many merchants had complained about excessive taxes in the first phase of the scheme.

Since her shop operates on thin margins, she said, the prospect of an unexpected tax bill is too great a risk.

She implored the government not to mislead merchants and to implement the programme without complex conditions, underscoring the severity of their economic struggle.

“Merchants are struggling to survive,” she said.

For some, a lifeline

Meanwhile, a grocer in Phatthalung told the Bangkok Post that the co-payment stimulus is perfectly timed, as over 90% of rubber tappers in the South lose their primary income during the rainy season.

The subsidy immediately translates into stability for families. Rohah Chitnaree, a dessert vendor, said the measure will allow her and other welfare cardholders to purchase essentials that can sustain a small household for the entire month.

The anticipated injection of cash is already affecting local supply chains, with rice agents reportedly stocking up “large lots of rice, worth millions of baht, to meet this demand”, she said.

Korn Suriyapan, President of the SME Federation for the Southern Border Provinces, called the programme “a necessary mechanism” to drive the economy, arguing that in the face of weak purchasing power and stagnant private investment, the government must serve as the primary driving force.

However, Assistant Professor Wiwat Jankingthong from Hatyai University’s Business Innovation Research Centre said while direct stimulus certainly can help grassroots economies, consumers would appreciate debt relief, new measures to bring down high energy costs, and fresh efforts to boost domestic tourism.

Drivers voice concern

The latest iteration of the Khon La Khrueng Plus scheme includes public transport for the first time — a move that brings millions of daily commuters into the fold but exposes serious logistical flaws for service providers.

In Nakhon Ratchasima, Surachat Dechanuphanon, a motorbike taxi driver, described the scheme as a “double-edged sword”. While he expects customer numbers to rise, he shares the tax concerns voiced by small merchants.

He also highlighted the digital divide, noting that older drivers who are not familiar with the applications needed to access the programme will inevitably struggle to join the scheme.

The most significant pain point for drivers is cash flow. Pitak Foithongpromrat, a tuk-tuk driver, articulated the challenge facing transport workers.

“If a customer uses the Khon La Khrueng privilege to pay for the service, it’s even worse, because I only get half the money from the customer immediately. The other half must be claimed from the bank, and I don’t know how many days it will take for the money to be credited,” he said.

“If I have to wait, I won’t have the money to fill up my fuel tank. Everything will be disrupted,” he said.

Not all opinions were negative, however. Boonyang Sirisuk, another motorbike taxi driver, found the digital payment process convenient, noting that scanning to pay is easier than dealing with cash change for cheap fares.

Another driver, Somchai Chanthakoot, said he thought the programme would lead to increased income.

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