Lamphun SMEs Support New Credit Term Regulations
Small and medium-sized enterprises in Lamphun are welcoming new Trade Competition Commission (OTCC) regulations aimed at limiting credit terms for agricultural products.
According to a report by Prachachat Business, small and medium-sized enterprises (SMEs) in Lamphun province have expressed support for new measures introduced by the Office of Trade Competition Commission (OTCC). These regulations are designed to restrict the 'credit terms' imposed by large retail chains on agricultural suppliers, capping them at a maximum of 30 days.
Local business owners, including producers of dried longan, believe this move is a step in the right direction to improve liquidity for smaller operators struggling amidst a sluggish economy. By shortening the payment cycle, suppliers can better manage their cash flow and operational costs.
Beyond the credit term caps, these business operators are also calling for broader structural reforms, specifically requesting a reduction in the Value Added Tax (VAT) for agricultural goods to 3%.
For residents and those involved in the local supply chain, this development signals a potential shift in how large retailers interact with local producers, which could stabilize the prices and availability of certain agricultural goods. However, it remains to be confirmed whether the government will consider the additional request for VAT adjustments or how strictly the OTCC will enforce these new credit term limits across the retail sector.
