BANGKOK, Jan 9 (TNA) - In an effort to help low-income workers not entitled to social security fund benefits, Finance Minister Korn Chatikavanij said on Friday that the Thai government will set up a fund for some 37 million workers in the informal sector.

Mr. Korn announced the plan two days after Prime Minister Abhisit Vejjajiva announced Wednesday that his government would push for a new Bt100 billion spending bill to finance job training programmes and community development projects to help seven groups of people including farmers, the unemployed, the elderly and new graduates.

"More than 37 million employees now working in the informal sector are not entitled to benefits under the social security network," Mr. Korn said. "Therefore the government plans a fund to help them like workers in the formal sector.".

He added that details on how the government and the workers could share contributions to the fund and the conditions set for providing loans to workers will be further discussed.

Regarding tax incentives to help ease financial pressure for consumers and entrepreneurs, Mr. Korn said the government is working out details to help reduce costs for every sector.

However, he shrugged off calls to lower value added tax from the 7 per cent to 4-5 per cent, arguing that VAT reduction would not significantly help spur domestic consumption amid the economic slowdown, but would cost the state Bt70 billion in tax losses. (TNA)