Finance Minister Vows To Revamp Of Whole Tax Sytem

[george]

Finance minister vows to go ahead with revamp of whole tax sytem

BANGKOK: -- Finance Minister Thanong Bidaya on Friday pledged he would go ahead with a plan to restructure the tax system as a whole to ensure its efficiency.

He said the government had already administered the country for five years. So, the ministry would from now on give an importance on the restructuring of the whole tax system.

He believed the country’s tax structure would change significantly in the next three years. It would help enhance the country’s competitiveness. But which type of tax would be revamped needed to be studied first.

Dr. Thanong shrugged off concern on a reduction of the tax collection by the Revenue, Excise and Customs Departments, saying the amount collected still exceeded the target set earlier.

Permanent Secretary for Finance Suparat Kawatkul had been instructed to find an approach to enhancing efficiency of the tax collection, he said, adding that he was confident the government would definitely manage to adopt the balance budget.

The minister said a decline in the tax collection by the Customs Department could be seen as a boost to long-term competitiveness in the business sector.

He attribute a fall in the tax collection by the Excise Department to a reduction in the oil tax, which is main revenue of the department.

--TNA 2006-02-10

[the gent]

Like they say, timing is everything.

Honestly, you just couldn't invent the extent of their stupidity but great fun for the interested observer.

[astral]

........which type of tax would be revamped needed to be studied first...........

Not to worry the study will take years and probably be inconclusive.

The new government in power then will reject it..............

Isn't government a wonderful thing?

[Greer]

If they really want to improve efficiency and competitiveness in the business sector, I think a better place to start would be with the horrendously complicated customs procedures.

I sent two pieces of normal sized items as unaccompanied baggage when I came home from Australia last month and the procedures to retrieve them at Don Muang took my wife and I most of the morning - and we needed to pay an experienced "agent" 300 baht to assist, otherwise we would never have been able to follow the whole thing through. We ended up having to see either 8 or nine different people and get the forms stamped, signed, authorised, dated, initialed, and checked at every step...unbelievable complication for what should be easy.

If the customs system is anything to go by, I would hate to see how complex the tax administration is - I suspect it is really just ensuring that a lot of people have jobs to do, as I can't actually see the need for such complexity when the requirement is relatively simple.

[dan10400]

........which type of tax would be revamped needed to be studied first...........

Not to worry the study will take years and probably be inconclusive.

The new government in power then will reject it..............

I thought the half-life of government initiatives in thailand was about

two weeks - the time it takes to fade from everyone's memory just

before the next big [initiative, scandal, act of corruption, hub, etc.] is

bantered about.

[cclub75]

If they really want to improve efficiency and competitiveness in the business sector, I think a better place to start would be with the horrendously complicated customs procedures.

I sent two pieces of normal sized items as unaccompanied baggage when I came home from Australia last month and the procedures to retrieve them at Don Muang took my wife and I most of the morning - and we needed to pay an experienced "agent" 300 baht to assist, otherwise we would never have been able to follow the whole thing through. We ended up having to see either 8 or nine different people and get the forms stamped, signed, authorised, dated, initialed, and checked at every step...unbelievable complication for what should be easy.

If the customs system is anything to go by, I would hate to see how complex the tax administration is - I suspect it is really just ensuring that a lot of people have jobs to do, as I can't actually see the need for such complexity when the requirement is relatively simple.

You're right with customs. I never saw a system like that. It's pure mafia.

Processes, rules, numbers change from time to time, regarding who's is the officer in charge that day (at airport or port), what it his mood, has he slept good the previous night, his mia noi was good at bed, plus many other factors.

As for the "agents" system, yes it's also mafia. Actually, they don't help their customers (businesses) but their only target is to please "customs autorities" to perpetuate the system, from which they live.

On the other hand, many businesses do all what they can to CHEAT (reducing the value of invoices) etc.

At the end, the state and businesses are loosing (all the money is going to private pockets of course).

They have to understand that to export, we need to import (machines, raw materials etc.). We need a clear system, efficient, reactive and transparent.

That's the first point.

Regarding the tax system, for instance on income. The thai system looks pretty good and simple if you compare what we have in european countries.

That's a good point.

But I believe they should ease the income tax for businesses (because it's a "national sport" to fraud results to reduce the amount of taxes to pay).

[Ricardo]

Has Thailand ever tried the Free-Trade-Zone approach, setting-up special areas for tax-free import of materials & machinery, with tax-free export & profits ? It all creates jobs, at least.

Apropos of which, the ex-MP & massage-parlour-king told a good one on TV last night, after signing-up for today's rally and saying passionately to much applause that he'd gone on similar demonstrations 30 years ago, and couldn't believe that he was still having to do the same thing again now.

- In the old days, you would put all your savings-money in a glass-jar, and bury it in the back-garden, but in these modern times you simply take your glass-jar and hop on the next Air-Asia flight to Singapore or the British Virgin Islands !

[Jai Dee]

Finance Ministry prepared 5-year development plan and aims to restructure tax system

The Ministry of Finance has prepared its 5-year development plan for the financial and capital markets, and also aims to restructure the tax system in order to accommodate the growth of the industrial sector.

Finance Minister Thanong Bidaya (ทนง พิทยะ) yesterday called a meeting of senior Finance Ministry officials to brief them on the tasks assigned to the ministry, comprising the development of the capital market, the state sector's financial servicing system, and the development of the Asia bond.

The Ministry of Finance plans to modify the tax structure for taxes such as auto & auto parts tax, termination of excise tax imposed on batteries, and those involving electronics products. A feasibility study of the restructuring will be concluded within two weeks, before the scheme is sent up for cabinet approval.

A 5-year development plan for the capital market was also discussed.

Minister Thanong spoke of the volatility in the stock market at present, and admitted that this had arisen from political factors. However, he believed investors will increase their investment once the situation clears up.

Source: Thai National News Bureau Public Relations Department - 16 Febuary 2006

[PeaceBlondie]

How about a retroactive 60% tax on capital gains that made Pin and Pan incredibly rich when they were still minors?

Or, a tax on miners who pan for ample gold while resting on their shins?

Edited February 16, 2006 by PeaceBlondie