Association urges PM to expand co-pay scheme
Summarized and contextualized by DistantNews.
At a glance
- The Thai Restaurant Association seeks to expand the "Thai Chuay Thai Plus" co-payment scheme to include larger businesses.
- Current eligibility restricts participation to small businesses and individuals, with the government subsidizing 60% of purchases up to 200 baht daily.
- Restaurant operators report declining sales and rising costs, arguing that excluding medium-sized businesses is unfair.
The Thai Restaurant Association is urging the prime minister to broaden the "Thai Chuay Thai Plus" co-payment scheme, allowing larger restaurant operators to participate. The current initiative subsidizes 60% of purchases, capped at 200 baht per day and 1,000 baht per month for four months, running from June 1 to September 30. It targets small businesses, including restaurants not registered as legal entities, and public transport operators. However, the association argues this exclusion unfairly disadvantages businesses with annual revenues between 2 and 5 million baht, which they classify as small restaurants. These businesses, often legal entities complying with regulations like VAT and social security contributions, are struggling with a 30-50% drop in sales and a 15-20% increase in raw material costs. They also face challenges from rising labor costs, shortages, and high delivery platform commissions. Suki Teenoi, a shabu shabu chain, noted a significant decline in diners as customers shifted to micro-vendors participating in the scheme. The company plans to use this period for renovations. The association's president, Thaniwan Kulmongkol, stated that small operators who are legal entities feel the current scheme is unfair as they are not eligible despite facing economic impacts. The association plans to submit an open letter to Prime Minister Anutin Charnvirakul to address these concerns.
Small restaurant operators who are legal entities feel this is unfair. They have complied with all regulations, including value-added tax registration, and social security contributions for employees. They are also feeling the economic impact, but are not eligible to participate in the current co-payment scheme
Originally published by Bangkok Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.