Modern retail lobby opposes tighter govt controls - The Nation

Home ? business ? Modern retail lobby opposes tighter govt controls

Retail Act

Kwanchai Rungfapaisarn

The Nation May 29, 2012 1:00 am

"Modern retailers in Thailand are now the most advanced and at the forefront in Asean. The government, the Internal Trade Department in particular, should see us as something with potential, not something they have to control. The government should see us as a route in taking local suppliers, especially small and medium-size companies, to penetrate the Asean market," said president Busaba Chirathivat.

The proposed law would also freeze the local retail sector from growing and preparing to face more intense competition and from expanding into the regional arena to cash in on the Asean Economic Community in 2015, she said.

The association would like to see such regulations to be fair and equally applicable to all retail segments, whether modern or traditional.

The current version of the retail act was drafted about five years ago. It is not up to date or in line with the current retail situation. It also does not address many significant issues such as online shopping, she said.

"There are many regulations that already control local retailers, such as city zoning and building ordinances, environmental regulations, and trade-competition and consumer-protection acts."

The association also took a dim view of the Internal Trade Department's move to put one-dish meals on the price-control list. Modern retailers have been accused of profiteering from their food-court businesses by setting high rents for vendors. The government is forcing modern retailers to slash their charges to food vendors from currently 37-40 per cent to only 20 per cent.

"The fee of 37-40 per cent fee includes the 7-per-cent value-added tax and 3-per-cent income tax. On behalf of the TRA, we think that the remaining 27-30 per cent is practical, as the fee covers all necessary expenses, such as kitchen equipment, water supply, electricity and air-conditioner services, cashiers and cleaning staff," Busaba said.

The government should look at the total supply chain for one-dish meals, especially upstream. It also should investigate the prices of one-dish meals sold by general street vendors for any price increases, she said.

Chatchai Tuangrattanapan, a director of the TRA, said the association had conducted a survey of food courts at Tesco Lotus, Big C Supercenter and Tops Supermarket and found that the prices of one-dish meals had not changed from the period before the flood last year.

"We consider food courts as a complementary service offered by modern retailers to their customers. They are not a profit-making business," he said.

The government's recent policy to raise the minimum daily wage to Bt300 pushed up the costs of the retailing business, which contributes 13.1 per cent of gross domestic product and employs about 6.3 million people, he said. About 30-40 per cent of total operating costs are labour-related.

Latest stories in this category

green party day 26 gronkowski new hunger games trailer sasquatch david choe national wear red day