Thailand coup: Military govt to extend tax rate cuts, says ministry official

BANGKOK (REUTERS) - Thailand's new military government will roll over corporate, income and valued-added tax rate cuts, which would otherwise expire this year, and has no plans to impose any capital controls, a senior finance ministry official said on Monday.

The government will also go ahead with some projects under a halted 2 trillion baht (S$77 billion) infrastructure plan, Mr Somchai Sajjapong, head of the finance ministry's fiscal policy office, told reporters.

Selected projects will be funded under the normal state budget, he said after a meeting with Air Chief Marshal Prajin Juntong, in charge of the economy for the military administration.

The army seized power on May 22.

Air Chief Marsahl Prajin said certain projects under a 350 billion baht water management scheme would also be implemented.

Mr Somchai said he was confident the economy would grow more than 2 percent this year but that the ministry was aiming for 3 per cent growth.