The government yesterday unveiled six measures, including moves to foot energy and water bills for low-income earners as well as cutting excise taxes on gasohol and diesel.

State kicks in nearly Bt50 billion for economic fillip and to help needy make ends meet

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.

Your Say

>> sataporn-hongthai, 30,

Newspaper salesman:

Newspaper orders are down 30 per cent because customers want to cut expenses. Out of the six measures, the most beneficial is to keep cooking gas prices at today's levels. It will keep the price of food down. Others, such as gasohol and diesel tax reductions will be more difficult to implement. Alternative-energy promotion is good but the government should set up a good support system. There aren't enough gas service stations. I disagree with the free public buses. The mass transit authority is already suffering. This is a second blow. Keeping fares steady would have been enough.

>> Noppawan banjong, 57,

Food vendor:

The best idea is holding cooking-gas prices. If this increases I will have no choice but to raise my prices, affecting regular customers. The free bus rides will be difficult to implement because there will be problems with the promotional half fares for students and the elderly. Free water and electricity is a no-go. Everyone should pay their own expenses. This money is better spent elsewhere. I'll be happy if the government just keeps prices where they are now.

>> Jittiporn soibanju, 30,

Shop owner:

My husband and I have one child and I have to pick up my kid from my mother-in-law in Phra Samut Chedi and then go back to Bang Khae everyday. So the petrol price move is welcome although it will be tough to implement because prices are beyond government control.

>> Somporn montha, 34,

Taxi driver:

If the government can help with the LPG prices for taxis, too, it will be great. But if they let prices float then I'll be hurting, given the high price of other goods. If they can implement all six measures, it will be good. I see benefit in all of them.