The Finance Ministry is still hoping that tens of thousands of wealthy elderly will forgo their old-age living allowances so the proceeds can be redirected to the needy after the ministry joined banks to facilitate donation of the allowances.
Thailand has 12 million people 60 or older, 10 million of whom signed up for the monthly living allowance, and 4 million are welfare smart cardholders, said Warotai Kosolpisitkul, a policy adviser to the Fiscal Policy Office (FPO).
The ministry wants 6 million recipients of the elderly living allowance to voluntarily forgo the financial aid, he said. So far just 811 have donated their living allowance to contribute to those in need.
A minimum of tens of thousands of elderly are expected to give up their living allowance after all commercial banks agreed to a public information campaign at branches nationwide to promote relinquishing the allowance for the needy.
The FPO will also broadcast advertisements on TV to promote the policy, Mr Warotai said.
If 10% of the 6 million targeted elderly people forgo the living allowance, the effort will be considered a success, he said.
The ministry is seeking a way for Thais to maintain living standards post-retirement and has estimated that 1,200-1,500 baht per month is the minimum amount the elderly need.
All elderly Thais are entitled to a progressive living allowance, with 600 baht paid monthly to those aged 60-69, 700 baht to those aged 70-79, 800 baht to those aged 80-89 and 1,000 baht to those aged 90 and older.
To increase the living allowance for needy senior citizens to 1,000 baht a month, the Finance Ministry has estimated that 2 million people would have to relinquish their allowance.
Those who give up the allowance are able to deduct the amount from taxable income.
Those who show intent to forgo their living allowance at branches of commercial and state-owned banks from Feb 1 to March 31 will be awarded medals and certificates signed by Prime Minister Prayut Chan-o-cha.
The government recently approved redirecting 2% of the sin tax to increase the allowance for the needy, but the 4 billion baht derived from the change is insufficient to offer all of them at least 800 baht a month.
