Political activist Srisuwan Janya will on Monday petition the Election Commission (EC) to look into whether the Pheu Thai Party's policy of giving away 10,000 baht in "digital money" to everyone aged 16 and older violates election law.
The Association for the Protection of the Constitution secretary-general said the policy may violate Section 73 of the law on the election of MPs, which prohibits poll candidates or other figures from promising to give voters assets, money or benefits, as well as giving misleading information about policies.
Mr Srisuwan said Pheu Thai failed to inform voters that the 10,000-baht digital money pledge could be subject to a tax of 15%, or 1,500 baht. That means they would receive only 8,500 baht after tax.
He said income earners must report the digital money they receive and the tax deduction from it in their yearly tax returns to the Department of Revenue or they could face legal action.
Vendors who receive the digital money from customers must also report the information to the department so it can be used to calculate further taxation, Mr Srisuwan said.
"Spending the digital money must be in line with the law. Violators will face hefty fines or even a jail term," Mr Srisuwan said.
The EC previously ordered Pheu Thai to clarify how much money will be needed for the policy and where it will come from, which is also required by the law on political parties.
Under the 10,000-baht project, every Thai who is 16 years of age and older will have a new savings bank account and a digital wallet which will be connected to his or her ID.
Last Friday, Pheu Thai said the source of funding would come mainly from an expected rise in tax revenue and budget funds reallocated from "unnecessary" projects.
Srettha Thavisin, a prime ministerial candidate for Pheu Thai, said the 10,000 baht is aimed at stimulating spending in communities in the first six months, with the help of blockchain technology that will ensure the money given is spent within a 4-kilometre radius to spur local economic activity.
It is meant as a one-time handout to help boost revenues from taxes from shops whose sales will likely increase as a result, he said.
The tax revenue from the project is estimated at 100 billion baht, while the budget required to fund the project is approximately 500 billion baht, he said.
