Corporate Tax Rate To Remain Unchanged

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Corporate tax rate to remain unchanged

BANGKOK: -– Deputy Prime Minister Suchart Jaovisidha has reaffirmed that the tax collection policy of the Revenue Department should remain unchanged.

But he admitted that rising oil prices would have a slight impact on profits of private businesses.

He said rising oil prices had affected the costs of businesses of the private sector, and tax collection could decline.

However, the corporate tax would not be affected due to the country's economic expansion in which several research agencies had forecast that Thailand's economy would grow between 6.5-7.1% this year, he noted.

The government's efforts in maintaining the diesel oil price would also help reduce the impact, as inflation would rise no more than 3% which is appropriate for the country's current economic situation, he said.

"The tax collection structure of the Revenue Department and Excise Department should not be changed. Although there are requests that the government lower the corporate tax, citing that the tax in Thailand is around 5-7% higher than that of Singapore. But you see, the cost of living in the island state is about 10% higher than Thailand, and this has persuaded foreign investors to prefer to invest in the Thai economy", he pointed out.

Capt. Suchart said the tax collection policy should stay as it is because global crude oil prices had started declining, and the tax collection for fiscal 2004 should meet the target.

-- TNA 2004-09-05