Thai finance chief cautions reform balance to prevent tax shock on economy

[snoop1130]

 

Krisada Chinavicharana, the permanent secretary at the Finance Ministry, sounded the alarm bell for the incoming government, stating that the proposed tax reforms aiming to bump up the revenue should not produce a shockwave effect on the economy.

 

Currently, tax revenue stands at just 14% of the GDP, falling short of the expected 15% or 16%, Krisada said. He stated…

 

“In all past government administrations, the ministry proposed tax reform plans for consideration, consisting of 20 items.”

 

Krisada shared his concerns, stating that even though the ministry hopes to execute the proposed tax reforms to ensure an increase in revenue – something critical to manage the expenses and navigate through the foreseeable economic uncertainties – it is pivotal that these steps do not deliver an undue blow to the economy.

 

He cautioned about extreme measures potentially shocking the economy and suggested reducing tax-deductible expenditures in a systematic, gradual manner. The Revenue Department, he points out, already offers numerous tax deductions, including those for retirement mutual funds, life insurance premiums, and mortgage interest. These deductions, in total, signify a significant portion of the overall tax deductions, he said.

 

By Alex Morgan

Caption: A heap of wealth, success and growth generated by artificial intelligence; Picture courtesy of vecstock, Freepik

 

Full Story: https://thethaiger.com/hot-news/economy/thai-finance-chief-cautions-reform-balance-to-prevent-tax-shock-on-economy

 

-- © Copyright Thaiger 2023-07-17

 

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[flyingtlger]

9 hours ago, snoop1130 said:

Krisada Chinavicharana, the permanent secretary at the Finance Ministry

How do you become the permanent secretary of Finance?

This is one of the reasons why things never change and the rich get richer.....

[sammieuk1]

Just think of a number as to how many tax scams are going on here ????

[hotchilli]

12 hours ago, snoop1130 said:

Krisada Chinavicharana, the permanent secretary at the Finance Ministry, sounded the alarm bell for the incoming government, stating that the proposed tax reforms aiming to bump up the revenue should not produce a shockwave effect on the economy.

Tax the trilliionaires more... they have the funds.

[RichardColeman]

If they put 20% tax on the acquisitions of all the generals and high ranking officials here from the last 6 years, they would even have enough left over for the moon program

[itsari]

I understand that 50 percent of the Thai workforce are self employed and the tax raised from them  is very low . 

That would be a very good start to making reforms . More revenue lost in that area compared to the richest 1 percent .

[rickudon]

On 7/18/2023 at 11:10 AM, itsari said:

I understand that 50 percent of the Thai workforce are self employed and the tax raised from them  is very low . 

That would be a very good start to making reforms . More revenue lost in that area compared to the richest 1 percent .

Doubtful. That 1 percent accounts for 20% of Thai GDP, and easier to assess 1 percent than 50 percent of people. So half the Thai population would have to start filing tax returns, with very little paperwork available as proof. And, of course, most would always earn just under the tax free limit! You would need to double the number of tax inspectors, probably cost more to employ them than what they raise. Finally, how do you get 50% of the voters to stop voting for you? Raise their taxes.

[itsari]

9 minutes ago, rickudon said:

Doubtful. That 1 percent accounts for 20% of Thai GDP, and easier to assess 1 percent than 50 percent of people. So half the Thai population would have to start filing tax returns, with very little paperwork available as proof. And, of course, most would always earn just under the tax free limit! You would need to double the number of tax inspectors, probably cost more to employ them than what they raise. Finally, how do you get 50% of the voters to stop voting for you? Raise their taxes.

Precisely what I am saying 

50 percent of the working population is avoiding tax.

Much more of a problem than the 1 percent 

 

[rickudon]

On 7/20/2023 at 11:22 PM, itsari said:

Precisely what I am saying 

50 percent of the working population is avoiding tax.

Much more of a problem than the 1 percent 

 

Avoiding paying tax? But many of them are below the level where income tax is liable. And many others would only be paying less than 10,000 baht in tax a year. It just becomes uneconomic to tax them, and the paper trail for income is non-existent. Instead, they raise money via VAT, which hits poorer people proportionally harder. Also, if you run a small shop, there are many licences to pay for. My wife has to get one for having a shop, one for selling alcohol; such as beer, another for spirits, and yet another for Tobacco. There is also sign tax - which is one reason so many smaller shops do not have a name.

[itsari]

12 minutes ago, rickudon said:

Avoiding paying tax? But many of them are below the level where income tax is liable. And many others would only be paying less than 10,000 baht in tax a year. It just becomes uneconomic to tax them, and the paper trail for income is non-existent. Instead, they raise money via VAT, which hits poorer people proportionally harder. Also, if you run a small shop, there are many licences to pay for. My wife has to get one for having a shop, one for selling alcohol; such as beer, another for spirits, and yet another for Tobacco. There is also sign tax - which is one reason so many smaller shops do not have a name.

There is a percentage of Thai self employed fit your criteria but in reality there are millions that are not .

Thank you for your reply

[matta]

If you concentrate on what you don't have, you will never, ever have enough.