Pheu Thai defends Thakin's tariff talks attendance
Pheu Thai MP and chief government whip Wisut Chainarun on Sunday addressed growing criticism over Thaksin's recent political involvement and participation in a policy meeting regarding US tariffs with 'Team Thailand' at Ban Phitsanulok, which triggered concerns that he may be unlawfully influencing the party or the government.
Under sections 28 and 29 of the Political Parties Act, it is illegal for a party to allow a non-member to exert influence, dominate or instruct party activities in any way. Such an offence comes with serious consequences, including the dissolution of a party. Thaksin, often regarded as the de facto leader of Pheu Thai, is not a member of Pheu Thai.
Mr Wisut insisted that inviting Thaksin to share economic advice in a forum does not constitute political interference. 'Thaksin never gives orders to MPs or officials. He's careful with his words and actions,' he said.
The former PM was invited to the meeting to provide insights based on his experience, he added. He also criticised those constantly making legal complaints against Thaksin, saying, 'Are you so afraid of Thaksin? This kind of obsessive litigation is tiresome."
Another Pheu Thai MP, Anusorn Iamsa-ard, also defended Thaksin's attendance at the meeting, noting that Thaksin's knowledge could be useful to the panel. He said the government welcomes input from all sectors in the handling of the tariff crisis and believes that Thailand can reach a deal to reduce US tariffs to below 36% by Aug 1.
Meanwhile, Thaksin is scheduled to deliver a keynote speech on Thailand's economic outlook on Thursday at the Queen Sirikit National Convention Center and preside over a major Buddhist ceremony at Wat Ban Rai in Nakhon Ratchasima.
The controversy emerged after former Supreme Court judge What Tingsamitr posted on Facebook, alleging Thaksin's activities could be viewed as controlling the ruling Pheu Thai.
He cited Thaksin's multiple public appearances, including media interviews and political forums, as evidence of indirect influence over Pheu Thai.
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Bangkok Post
18 hours ago
- Bangkok Post
Border crisis blues
Simmering tensions along the Thai-Cambodian border have intensified the political storm in Thailand, with analysts saying the Pheu Thai-led government is rapidly losing public trust amid accusations of weak leadership, poor crisis communication, and possible secret dealings. Public confidence in Pheu Thai had already declined, as indicated by the second quarter NIDA Poll, conducted on June 19-25. Prime Minister Paetongtarn Shinawatra, suspended from duty pending a Constitutional Court ruling over a leaked audio clip involving her conversation with Cambodian Senate President Hun Sen, won an approval rating of just 9.20%, down from 30.90% in the first quarter. The sharp drop came even before the recent border clashes erupted. Analysts believe the escalating violence and the government's sluggish response are likely to further shrink public support. Absence of trust Olarn Thinbangtieo, deputy dean of Burapha University's faculty of political science and law, said the Paetongtarn administration has struggled from the start to dispel public doubts about possible hidden agendas due to the Shinawatra family's close ties with Cambodian strongman Hun Sen. Distrust began to grow following a meeting between her father, former prime minister Thaksin Shinawatra, and Hun Sen at Thaksin's home in Bangkok after he was granted parole in February last year. The situation further deteriorated after Ms Paetongtarn was heard criticising the commander of the Second Army Region and appearing overly willing to yield to Hun Sen's demands in the leaked conversation. Following the border clashes, the government has been criticised for failing to manage crisis communication. While the military has taken a proactive role, the government's slow response has fueled speculation about behind-the-scenes interests, said Mr Olarn. And rather than addressing the situation directly, the government has allowed Malaysian Prime Minister Anwar Ibrahim, in his capacity as Asean chair, to mediate the conflict, with the United States also playing a part in the process. Although Malaysia's intervention is in line with Asean's approach, Thaksin serves as an adviser to Mr Anwar, and with his complex relationship with Hun Sen, many believe Thaksin may have asked Anwar to step in, he said. The circumstances have led many to wonder if the border conflict is being used as a pretext to enable deal-making or interest sharing in the overlapping claims area (OCA) between the countries, an area believed to have rich fossil fuel deposits. "The government has done nothing. Such inaction has only fueled public suspicion. Lives are at stake, so people are beginning to question whether there are hidden interests behind the scenes, particularly involving the Shinawatra and Hun families," he said. Mr Olarn said Cambodia has outperformed Thailand on many fronts in the conflict, such as international diplomacy, and unity between the government and its military. Nonetheless, the conservative camp sees Thaksin and his networks as necessary, so they are likely to maintain their status for now. However, Mr Olarn expressed doubts about Pheu Thai's chances of winning the next elections though Ms Paetongtarn is likely to hold on to the prime minister post as long as there is no court order to remove her from office. Public backlash Prathuang Muang-on, a lecturer at Ubon Ratchathani University's political science faculty, said the border conflict has eroded confidence in the ruling party, pointing to open hostility toward Thaksin during his recent visit to Ubon Ratchathani to support civilians displaced by the clashes. While the lower Northeast is traditionally not a stronghold for Pheu Thai's constituency MPs, the party has performed well in the party-list system. But the border dispute is thought to cut into the party's support in Ubon Ratchathani and Si Sa Ket by at least 5%. Also, although Pheu Thai has a broad support base in the Northeast, the fallout from the border dispute has sparked criticism among northeastern voters, Mr Prathuang said. The leaked clip was the first factor, followed by the government's slow response in addressing the crisis and helping those affected. Combined with the military's proactive role in the conflict, the government is viewed negatively, he said. Even if Ms Paetongtarn steps down and Pheu Thai's prime ministerial candidate Chaikasem Nitisiri takes over, it is unlikely to make much of a difference. However, does not expect a dramatic change in Pheu Thai's overall seat count in the next elections, though the landslide victories in the constituency system which the party once enjoyed are now a thing of the past. It would also have a tough time winning party-list support. Court ruling is key Korkaew Pikulthong, a red-shirt leader and a Pheu Thai list-MP, admitted the government's image has suffered from poor communication but insisted the border tensions are unlikely to change the political landscape. "What really matters is the court's decision. If the court rules against Ms Paetongtarn, she is out, and the fallout could be immense. The party's third candidate, Mr Chaikasem, may not have much backing from the party MPs or coalition partners," he said. It was too soon to say whether the political turbulence marks a turning point even if Ms Paetongtarn is removed from office because the court decision would be based on evidence rather than an attempt to eliminate a political family. "It can't be concluded it is the end of Shinawatra family. It is one-time incident to be judged on its own merits. But if the prime minister is removed from office, it will shake public confidence," he said. He said that Thaksin still holds political clout and the former prime minister commands more public confidence than many other political figures. Asked whether the Shinawatra family's clout is fading, he said Pheu Thai has been on a downward trend since the last general election. He said stimulus schemes were not effective in reviving the economy because cash handouts were often not spent as intended. A digital wallet would allow more control and ensure the money is spent effectively, he added. Still, he said the focus now is on delivering results, especially on key economic initiatives and passing the budget bill which is not expected to face any hurdles. In the event the government is unable to continue, a House dissolution is the most likely path forward. While some analysts predict Pheu Thai could fall below 100 seats in the next elections, he said: "Let's not underestimate the party too soon." Full-blown crisis of faith Bhumjaithai Party deputy leader Siripong Angkasakulkiat said the government faces a deep lack of public confidence, and its actions, whether from Thaksin, Ms Paetongtarn or acting prime minister Phumtham Wechayachai, have done little to inspire confidence. He criticised the government's handling of the border conflict, saying it should have relied on formal, state-level diplomacy. Instead, the government's tone comes across as personal, which has stirred suspicions. Mr Siripong also pointed to a lack of coordination and strategic direction within the administration. Many officials appear hesitant to act if there are no clear instructions, possibly out of fear of making missteps or displeasing their superiors or the public. "They do what only they are told. When there are no clear orders, nothing gets done. The government communication has been one-sided, focusing only on positive news without offering a clear, comprehensive plan to address the crisis," he said. Mr Siripong said the Pheu Thai-led government has a chance to prove itself, but missed it. "What they now face is a full-blown crisis of public faith," he said. Asked whether the Shinawatra family still carries weight, he said Thailand risks heading down a path similar to Cambodia, where political power remains in a single family. On the government's fate, he said the ruling party's focus is on short-term populist projects, such as the 20-baht electric train fare policy, with which it hopes to score quick wins ahead of elections. However, it is unclear if this will work. Pheu Thai could slip to the third place and win fewer than 100 seats in the next polls. "The government's future hinges on two key events: the court's ruling on Ms Paetongtarn's case and the outcome of the next censure debate. Based on the current public mood, it's hard to see this administration lasting much longer," he said.
Bangkok Post
2 days ago
- Bangkok Post
Tax shift props up the auto industry
Former prime minister Thaksin Shinawatra said during a recent conference that the government should impose a high excise tax on imported electric vehicles (EVs) that use a low proportion of local content. Thailand's free trade agreements (FTAs) with some countries have resulted in a 0% import tariff on EVs, which hampers the domestic auto industry. Thaksin said imported EVs should be required to use a minimum level of local content, such as car seats, to protect the domestic industry. Thailand signed an FTA with China primarily using the Asean-China FTA framework around 20 years ago, setting zero tariffs on imports, including EVs. Following the speech, the Excise Department is preparing to adjust the excise tax structure for vehicles, linking it to the use of local content. Imported EVs with a high proportion of domestically manufactured components will, in principle, be eligible for a lower excise tax rate than those with a smaller proportion of local content. 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The ratios are set at 1:2 and 1:3 for manufacturers under the EV3.5 programme, which is aimed at propelling EV industry growth between 2024 and 2027. This approach, proposed by the Federation of Thai Industries, is expected to increase the number of EV exports to roughly 12,500 units this year and 52,000 units in 2026.  What is the goal of the tax promotion measures for EVs? Thailand clearly wants to shift from being a leading producer of ICE-powered vehicles -- ranked 10th globally in 2023 -- to production of EVs. 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As for fully imported vehicles from China that avoid import tariffs under the Asean-China FTA, the Excise Department plans to coordinate with the BoI for the latter to issue support measures for EVs that use local content, according to the source, meaning imported EVs meeting the specified proportion of local content will be eligible for a lower excise tax rate. Investment promotion for EV production, key components, charging stations, and battery swapping stations tallied a cumulative value of 138 billion baht, including: 21 BEV manufacturing projects with a total investment of 41 billion baht and a combined production capacity of 386,000 units per year; 16 electric motorcycle manufacturing projects with a total investment of 990 million baht and a combined production capacity of 810,000 units per year; and three electric bus and truck manufacturing projects with a total investment of 2.20 billion baht and a combined production capacity of 4,800 units per year. For battery manufacturing plants, there were 53 projects with a total investment of 80.1 billion baht. Production of other key components such as traction motors, battery management systems, drive control units, and on-board chargers tallied 42 projects with a total investment of 6.52 billion baht. EV charging stations garnered 29 projects with a total investment of 5.56 billion baht to install 20,080 charging points, including 7,360 quick-charge points. There were five battery swapping station projects with a total investment of 1.28 billion baht, comprising 555 stations for motorcycles, seven stations for large commercial vehicles, and six stations for passenger cars. As of March 2025, there were 3,720 public EV charging stations with 11,622 charging points nationwide. These consist of 6,524 DC (fast) chargers and 5,098 AC chargers, with coverage across all regions of the country. Government support for the transition from ICE vehicles to EVs included an excise tax reduction for hybrid vehicles that emit no more than 100 grammes per kilogramme of CO2 to 6% for seven years. Tax incentives were also revised for PHEVs, which can be developed into EVs in the future. The previous qualification for the 5% excise tax rate had two conditions: an electric range of at least 80 kilometres per full charge and a fuel tank capacity not exceeding 45 litres.
Bangkok Post
2 days ago
- Bangkok Post
Pichai says 19% US tariff reflects strong Thai-American ties
Finance Minister Pichai Chunhavajira viewed the United States' imposition of a 19% tariff on Thai goods as a reflection of the close and enduring friendship between the two nations. In a post on his official Facebook page on Friday, Mr Pichai, also deputy prime minister, emphasised that that the tariff announcement underscores the strength of bilateral relations and will help Thailand maintain its global competitiveness, boost investor confidence, and create new avenues for economic expansion, income generation, and opportunities for the kingdom. 'The announcement of the 19% tariff rate reflects the strong friendship and close partnership between Thailand and the United States. It helps maintain Thailand's competitiveness on the global stage, boosts investor confidence, and opens the door to economic growth, increased income, and new opportunities for the country,'' stated Mr Pichai. He added that the work is still in progress and the government is fully aware of the impact this development may have on entrepreneurs, small and medium-sized enterprises, and farmers. In response, a comprehensive set of support measures have been prepared, including budget allocations, soft loans, subsidies, tax measures, and necessary regulatory reforms, aimed at ensuring Thailand can adapt and move forward confidently in the evolving global economy. 'The outcome of this negotiation signals that Thailand must accelerate its adaptation and move forward in building a stable and resilient economy, ready to face global challenges ahead,'' the finance minister said. He extended his appreciation to Team Thailand for their dedication and tireless efforts during such a difficult situation. 'There are many more tasks ahead of us. We will continue to give a full effort—for our Thailand, for all of us.'' The United States set a 19% levy on imports from Thailand and Cambodia, lower than the 36% they originally faced, after US President Donald Trump earlier this month threatened to block trade deals with them unless they ended a deadly border clash. Malaysia, which helped broker the ceasefire, was also set at 19%. That's on par with previously announced rates for Southeast Asian neighbours Indonesia and the Philippines.
