Pichai provides update on US tax negotiations, expects conclusion this month

Deputy Prime Minister and Finance Minister Pichai Chunhavajira on Wednesday provided an update on the ongoing US tax negotiations after the US announced a 19% reciprocal tariff on Thai exports. He explained that the process has not yet reached the stage where the issue will be sent to Parliament as discussions are still ongoing with US authorities. The negotiations are focusing on the finer details and are expected to progress further in the coming days.

When asked if the US had set a deadline for the negotiations, Pichai replied that no specific timeline had been given, but both sides are working to complete the discussions by the end of August.

“Many countries are at this stage of working through the details, as the US has limited personnel,” said Pichai.

Regarding the economic restructuring of Thailand, Pichai clarified that he would not personally oversee the process, but emphasized that restructuring would require time and collaboration from both the public and private sectors. “The process will involve various sectors; some will be handled by the private sector, and others by the government. The key is to have a unified vision and plan,” he said.

When asked about whether Thailand’s GDP growth would reach the previously mentioned target of 3-5% per year following the economic restructuring, Pichai stated that if there are no significant obstacles, the country should be able to achieve this, though structural issues in the economy need to be addressed for sustained growth.

On the topic of establishing an Asset Management Company (AMC) to address household debt, Pichai confirmed that discussions are underway with financial institutions to determine the best approach.

As for the remaining 25 billion baht in the Phase 2 economic stimulus budget, Pichai stated that it would be used for several essential projects, including addressing the Thailand-Cambodia border situation, among other pressing needs.