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Sunday, April 18, 1999

Asia View 

 
Better spending power, the Thai way

Two weeks after the Thai government officially unveiled its job creation fund to stimulate the economy, many local governments remain confused, if their projects qualify for the scheme, writes Bangkok Post.

While rural administrative organisations have begun serious debate on their projects, conflicts have started to emerge amid tussles to get funds for their communities and people.

The government proposed injecting 53 billion baht from foreign loans to create jobs in the provinces during the next six months, to increase the people's spending power and stimulate the economy.

Of this, 17 billion baht will be injected through the interior ministry - which will provide more than 7.4 billion baht directly to tambons throughout the country, which will each receive one million baht.

The government hopes that this direct cash injection will be effective in boosting purchasing power in rural areas. It also set guidelines that each tambon allocate 100,000 baht toeach village. But things do not always turn out as the government expects.

Office on wheels

KLM cargo has launched an ``office-on-wheels'' scheme which gives UAE customers access to over 150 KLM offices worldwide. A global launch of the scheme was made through the KLM's office in Dubai recently, according to Gulf News.

``The office on wheels, which is fully equipped with telephone, fax and computer services, will visit the customer at his doorstep by prior appointment and advise him on a variety of our cargo products and services. Bookings can be made on the spot,'' Guss Brinkel, director of customer services (Middle East and Indian subcontinent) for KLM cargo has said.

He said KLM is the first airline to offer such services in the UAE. ``It is not our policy to divulge the rates, but we can assure the customer of the best services,'' he said. ``The scheme is being launched as part of our business strategy to serve the customer better. Initially, the office on wheels will operate at the JebelAli Free Zone, since there is a high concentration of our customers there. Services will also be used during major public events'' such as equestrian competitions and shows.

``We have 24 offices at present. By June we will be adding another four. Over the next three to four years we should have 50. In the UAE, we have offices in Abu Dhabi and Dubai. We plan to move into Sharjah, Al Ain, Fujairah and Ras Al Khaimah,'' he said. KLM Cargo is offering customers a 5 per cent discount on bookings through the office on wheels scheme for the first month of its launch.

ST records not for IT

The Central Board of Revenue of Pakistan has clarified that all producers and traders registering under the Sales Tax Act would be immune from opening of record for assessments under the Income Tax Act, reports Dawn. It pointed out that the Income Tax Ordinance, 1979, Clause 24, bars the IT department from using sales tax turnover records for assessment of IT for years up to 1999-2000.

The issuance of a CBR GeneralOrder No 4, of April 8, 1999, follows exchange of views between the CBR and Federation of Pakistan Chambers of Commerce and Industry.

The order issued recently says: All persons liable to be registered as manufacturers, producers, wholesalers, dealers, distributors, importers or retailers are well advised to get themselves registered under the Sales Tax Act 1990. However, it appears that there are apprehensions in the minds of taxpayers that the turnover of the persons registered with the sales tax department shall be used for income tax assessments.

These apprehensions are not correct, it says. Attention in this regard is invited to Clause 24 of Part IV of the Second Schedule to the IT Ordinance 1979. The IT assessments would, therefore, not be reopened for the said years on account of suppression of non-declaration of sales declared on the basis of sales tax filed by such persons.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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