Spokespersons for Prime Minister Thaksin Shinawatra have announced that the government is ready to undertake the biggest legal overhaul in more than 200 years with the amendments of 377 laws. Out of these 377 laws, 106 were deemed contradictory to the constitution, 21 were considered archaic and 30 were characterized as infringing on people's rights. PM Thaksin disclosed that Thailand has been inhibited by many antiquated laws and amending these laws would empower the people. He added that legal reform has long been overdue and an overhaul is necessary for eliminating injustice and corruption. PM Thaksin believes that revising these laws would strengthen security and aid future social and economic development.

The US Department of Commerce has ruled that plastic imports from Thailand, India and Indonesia used for bottle-making were dumped on the US market. Based on the calculation by the Department, the dumping margins for Thailand range from 24.83 to 41.28 per cent. While awaiting the final injury determination due in April, US customs agents will collect a cash deposit or bond of dumping margin equivalent on any imports in question. If a negative determination is reached, the money collected will be returned.

Under the proposed amendment to the provident fund law, a professional can contribute to the fund by claiming deductions against personal income tax and expense claim. The Finance Ministry said that employees would be allowed to increase fund contributions without requiring the employer to match the contribution. In addition, the current minimum contribution, set at two per cent of the monthly salaries, would be scrapped. Current laws prohibit independent professionals from establishing their own provident funds. Finance Ministry officials disclose that the government is finalizing plans to introduce a mandatory provident fund system. The new system would require all companies to establish a fund for employees, with a set 2.5-3% contribution of the monthly salary. For companies that implement the voluntary and mandatory provident funds and participate in the Social Welfare Fund, the authorities may offer incentives as encouragement. Expected to come into effect in 2007 or 2008, the mandatory fund program will cover companies with one or more employees earning a minimum monthly salary of 15,000 baht.

The cabinet has approved, in principle, a revised draft of the National Identity Card bill. The revised bill would require newborns to have identity cards within 60 days of birth and children under 15 to apply for identity card within one year. Currently, identity cards are only issued to children who turned 15. The amendment, drawn by the Interior Ministry, was in line with the government's policy to issue new smart identity cards. The new microchip-embedded card will hold personal information such as date of birth, current address, blood type and tax information.

A preliminary free-trade agreement between Japan and Thailand has been reached to allow Thai nationals to work in industries such as advertising, fashion design, tourism and exhibitions. However, both parties have not come to an agreement on the certification of labor standards. The Thai Foreign Ministry has disclosed that inclusion of farm products following the recent exclusion of rice and spa-related services have yet to be determined in the free-trade agreement (FTA). The Ministry also said that details on labor standards and visa procedures still need to be ironed out. In addition, Thailand is seeking certification from Japan to allow Japanese patients to enter Thailand for medical treatment and have their medical fees reimbursed from the Japanese social security fund.

The National Health Security Office (NHSO) is seeking for an article revision in the National Health Security Act to allow victims of medical malpractice to claim quicker compensation. A NHSO spokesperson said that claims for such medical cases should also take humanitarian issues into account and victims should be entitled to initial financial assistance. Currently, patients who develop complications are not compensated if the course of treatment administered was deemed appropriate. Only three-quarters of the patients who sought compensation have received financial assistance from a fund set up by the Act three years ago. This fund is meant for victims of medical malpractice and fund contributions come from all doctors in Thailand.

The signing of a free-trade agreement between Thailand and New Zealand is scheduled to take place this April 19, making Thailand part of a free-trade area that also includes Australia. Thailand will also start talking on the free flow of trade in services with Australia and New Zealand within three years of the respective FTAs' implementation. Sources have stated that according to current plans, New Zealand will eliminate duties on 5,878 product items out of more than 7,740 items it offers to Thailand from the beginning of July. A further 697 items will have its duties eliminated by 2010 and the remaining items by 2020. Thailand is obliged to remove its duties on all New Zealand goods within 20 years, with duties on 2,978 product items from New Zealand to be scrapped with immediate effect. In an effort to protect its domestic industries, Thailand will reduce the import levies on the remaining 1, 961 product items within five years. This is the second FTA that Thailand has signed with a developed country on all goods and services, the first being the Thailand-Australia FTA which came into effect early this year. The government hopes that the FTA will bring in more investments from New Zealand in the form of joint ventures or strategic alliances.

The Revenue Department has disclosed that come next year, people earning less than Bt100,000 yearly may no longer be required to file tax returns. This is a result of the new changes in tax law proposed and these changes to the existing laws are likely to take a year to implement. Currently, those earning Bt30,000 upwards annually are required to file tax returns under the existing tax law. With the new changes implemented, the department hopes to eliminate the unnecessary filing of income tax for some. The new changes are believed to benefit self-employed personnel when the second phase comes into effect. However, annual tax rebate forms would still have to be filled out to claim tax rebates.

The Foreign Trade Department will set up two new bureaus to fight unfair practices that may result from free-trade agreements (FTAs) signed with the other countries. The department disclosed that the measures are meant to ensure that Thailand is protected from unfair non-tariff barriers and to prevent dumping. The Trade Measures Office will closely monitor the swift changes in trade regulations and policies among Thailand's trading partners. The Trade Privilege Development Office will center on encouraging Thai exporters to make use of tax privileges under the FTAs. A Safeguard Act is also being drafted to ensure that retaliatory measures can be enforced against imports without delay. The new structure is set to be in operation on March 1.

Three budget airlines - Nok Air, Thai AirAsia and Orient Air - were warned and fined Bt150,000 each for misleading consumers with their ads. The Consumer Protection Commission disclosed that consumers have filed complaints that the airlines use fine print for restrictions but mislead consumers with their headline-grabbing cheap rates. The three airlines are eligible to appeal to the commission within 30 days.

In a bid to overhaul the Social Security Act, amendments to the Act have been proposed to make it more responsive to the current social and economic situation. Following the new amendments, only retrenched workers will be compensated for unemployment; workers who resign voluntarily will no longer be eligible. According to the proposed amendments, the board of directors from the Social Security Office will accept appeals for unemployment compensation by workers who resigned, but approval is considered on a case-by-case basis. Currently, qualified unemployed workers may receive 30 per cent of their last-drawn salary for three months under certain conditions if they have contributed to the social security fund for a period of time. Although the international practice is to compensate only retrenched workers, Thai laws compensate workers who were forced to resign by employers who seek to avoid the consequences of laying off workers.

The SET is set to take a tough line on companies which do not comply with disclosure regulations. The exchange is closely monitoring share price and volume movements in a bid to clamp down on speculation and unfair access to information. If a company circulates information in trading rooms or in the media before SET has been formally notified, the company's shares would be suspended pending clarification. The SET, the Securities and Exchange Commission and government agencies are also working together to make sure that all information is disseminated in a fair and accurate manner.