Government to Collect Tax From Stock Market Sales This Year

[webfact]

 

by Paul Rujopakarn

    

BANGKOK (NNT) - The Ministry of Finance has indicated that individual stock investors can expect to face a financial transaction tax this year in response to local market expansion.

 

Finance Minister Arkhom Termpittayapaisith reiterated that his ministry would proceed with its tax collection plan, affirming that this year would be the appropriate time to implement it.

 

He noted that the Thai stock exchange has seen significant growth, having been spared much of the negative internal economic effects of the COVID-19 pandemic. He also emphasized that the tax has been absent for over 30 years.

 

While not specifying when the tax proposal will take effect, the ministry said it will notify the Stock Exchange of Thailand (SET) in advance of the tax collection plan, Minister Arkhom said. He added that the tax plan is already in place and is not a new one.

 

Keep up to date with all things Thailand - Join our daily ASEAN NOW Thailand Newsletter - Click to subscribe

 

The ministry has already convened with representatives of the SET and the Federation of Thai Capital Market Organizations to discuss the situation.

 

Minister Arkhom said eliminating the tax exemption on shares sold on the local market should assist the government in increasing its tax base and generating additional revenue for national development.

 

He also estimated that the government would earn up to 10 billion baht annually from the move, adding that the ministry will submit for Cabinet approval a ministerial regulation authorizing the tax.

 

For more than 30 years, the government has waived its proposed tax on SET dealers to promote market development. In addition to the 0.1% charge, investors would be subject to a similar local tax, totaling 0.11% of share sales.

 

-- © Copyright NNT 2022-04-12

 

- Aetna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

- Follow ASEAN NOW on LINE for breaking COVID-19 updates

 

[Whale]

So how much is the tax? Just 0.11% ? 

[userabcd]

"He noted that the Thai stock exchange has seen significant growth"

 

[KhunLA]

I'm taking that as a sure sign the govt is in deep financial trouble.   Good for us, bad for them and Thailand.

 

The SET was a hands off policy for the taxman ... What next RE Taxes, local, amphur, provincial & school taxes like in the USA, which adds up to an almost total living expense for some here.   One of the major reason Thailand is financially attractive to expats, as they don't really exist here.

 

Hope they tax the hell out of them at SET, meaning they're done gouging everyday commodities with taxes.  Give us poor folks a break ... ????

 

Chart above screams otherwise ... a pure money grab.  Does this administration fear it's on borrowed time ... ????

Edited April 12, 2022 by KhunLA

[rimmae2]

1 hour ago, userabcd said:

"He noted that the Thai stock exchange has seen significant growth"

 

Growth in terms of trading volume may be what is meant especially if translation is not 100% correct.

[ukrules]

Governments around the world seem to want to extract some of the trade from stock exchanges.

 

Sweden did it in the 80's and it ended very badly, much of the trade simply moved abroad - 50% of it and it was reversed completely after the damage was done.

 

I wonder what will happen when the volume drops massively on the exchange after the tax is activated and how long it will take for there to be the first discount and eventually a complete revocation once the damage has already been done.

[Puccini]

12 hours ago, ukrules said:

I wonder what will happen when the volume drops massively on the exchange after the tax is activated and how long it will take for there to be the first discount and eventually a complete revocation once the damage has already been done.

When the trading volume falls, the tax rate will be increased. That's how it works in Thailand.

[Oxx]

The London Stock Exchange charges 0.5% on purchases, so the Thai proposal seems moderate.  (The UK also has capital gains tax which can be far more punitive.)  In all, whilst this move is unwelcome, it is modest, and not at a level that will lead to investors' fleeing the exchange.

Edited April 13, 2022 by Oxx