Thai Finance Minister Calls for Tax Reform to Boost Economic Growth

[snoop1130]

 

Thailand’s Finance Minister, Pichai Chunhavajira, pushed for comprehensive tax reforms during his speech at the ACMA Business Forum 2024. Pichai stressed that Thailand’s personal and corporate income tax rates are higher than those of many competing nations, a discrepancy that could hinder the country's economic growth. The Minister underlined a global trend of lowering such taxes to stay competitive internationally.

 

In discussing value-added tax (VAT), Pichai noted that it is a consumption-based tax, meaning those who purchase more will pay more. He advocated for an equitable application of VAT while suggesting that part of the revenue should support low-income individuals.

 

Debt restructuring, particularly for home and car loans, was another focal point. Pichai recognised the challenges this entails but stressed its importance for financial stability, which, in turn, benefits banks. He warned that allowing more loan defaults could weaken even the currently strong financial institutions.

 

Reflecting on Thailand’s economic trajectory, Pichai recalled the high GDP growth rates of 9-10% in the 1980s, driven by a strong investment ratio. However, he observed a stark contrast today, with the investment ratio down to 19-20%, contributing to slower economic growth. Excluding the Covid-19 period, the average growth rate in recent years has been 1.9%, far below the potential 3.5%.

 

 

 

 

Pichai also highlighted the importance of a flexible exchange rate for the baht, given that export revenue constitutes a significant 65% of GDP. He emphasised that the exchange rate should be guided by market mechanisms.

 

Addressing the stock market’s positive trends, Pichai credited the confidence in the new government's policies, adjustments to investment rules, and the promotion of new funds aligned with these policies. He projected that maintaining a trading volume range of 60-80 billion baht (approximately US$1.8-2.3 billion) was attainable with increased economic confidence.

 

Pichai's call for tax system integration and reform reflects a push to realign Thailand with global standards, aiming at fostering sustainable economic development.

 

File photo for reference only

 

-- 2024-09-10
 

 

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[FriscoKid]

Kulaya Tantitemit has set a target for the revenue department to collect 2.372 trillion baht in 2025 and expects to hit that by charging foreigners (residing in Thailand for more than 180 days per year) a personal income tax on their worldwide income. And now this guy Pichai Chunhavajira, the finance minister, wants to lower tax rates. As usual, no clear direction from the people working together in government. 

 

[ikke1959]

As I wrote many times, Thailand should register residents where they live and not in the blue family books. Then everybody has to fill in a tax form with their jobs, bank accounts, earnings and possessions.  This could show a lot of information, and also shows the bribing and corruption ... As when someone has a job of 15k a month , he she can't  without explanation have several houses or expensive cars.. And they could say it is from a inheritage but that is easy to check too as the ones who died have filled in tax forms too.Besides that the real poor people are easily found and can be given proper help, but at this moment the Government has no clue where someone lives, is doing what earn how much and what assets they have. Easy to reform tax, but first make a real thing that you can reform.. Now there is nothing as 75% of The Thai people can do as they like

[redwood1]

1 hour ago, ikke1959 said:

As I wrote many times, Thailand should register residents where they live and not in the blue family books. Then everybody has to fill in a tax form with their jobs, bank accounts, earnings and possessions.  This could show a lot of information, and also shows the bribing and corruption ... As when someone has a job of 15k a month , he she can't  without explanation have several houses or expensive cars.. And they could say it is from a inheritage but that is easy to check too as the ones who died have filled in tax forms too.Besides that the real poor people are easily found and can be given proper help, but at this moment the Government has no clue where someone lives, is doing what earn how much and what assets they have. Easy to reform tax, but first make a real thing that you can reform.. Now there is nothing as 75% of The Thai people can do as they like

 

Sir you must be joking......The people who have bought expensive positions of power expect a huge return on their investment.....And paper trails would very much get in the way of wealth accumulation.......So things need to be left in a murky state for the benefit and receiver of unusual wealth...

[Danderman123]

And in another topic:

 

Its Happening - Law to Tax Overseas Income Now in Progress

[Danderman123]

Years ago, I worked for a company that had a single successful product, it's cash cow. But everyone knew that when the cash cow died from obsolescence, the company was dead meat.

 

So, Top Management was continually making pronouncements about new products and services that would supplant the cash cow. All of those announced products and services came to nothing. As an employee, it was rather distressing, and I made an exit plan.

 

After I left, the cash cow started failing, and the company effectively failed.

 

I see the same with these pronouncements by Top Management that are disconnected from reality. Thailand is a cash cow for Top Management today, but if they run the country into the ground by focusing on Hubs and proclamations of Crackdowns and other useless endeavors, those left holding the bag will have a tough time.

[Tropicalevo]

3 hours ago, FriscoKid said:

As usual, no clear direction from the people working together in government.

 

Thai ministers and spokesmen are NEVER working together.

It is always me, me, me.

Internal bickering and power plays are just one of the things that are stopping Thailand from moving forward.

[MarkBR]

A surprisingly sensible statement from a Government Minister.  I assume he will not last long.

[Presnock]

11 hours ago, Danderman123 said:

Years ago, I worked for a company that had a single successful product, it's cash cow. But everyone knew that when the cash cow died from obsolescence, the company was dead meat.

 

So, Top Management was continually making pronouncements about new products and services that would supplant the cash cow. All of those announced products and services came to nothing. As an employee, it was rather distressing, and I made an exit plan.

 

After I left, the cash cow started failing, and the company effectively failed.

 

I see the same with these pronouncements by Top Management that are disconnected from reality. Thailand is a cash cow for Top Management today, but if they run the country into the ground by focusing on Hubs and proclamations of Crackdowns and other useless endeavors, those left holding the bag will have a tough time.

and then the armed guys step in for a while to get their fair share, then it starts all over...been living here at times since the early 1970's....very little has changed in politics

[Caldera]

On 9/10/2024 at 5:24 PM, snoop1130 said:

Reflecting on Thailand’s economic trajectory, Pichai recalled the high GDP growth rates of 9-10% in the 1980s, driven by a strong investment ratio.

 

You won't be seeing THAT again with this aging and poorly educated workforce.