Gold, jewellery trade to be exempted from tax, says Thai Finance Ministry

[webfact]

Gold, jewellery trade to be exempted from tax, says Finance Ministry

BANGKOK, 7 March 2016 (NNT) – The Ministry of Finance is set to open a free trade market for gold, jewellery, and accessories exempted from taxation to increase the nation’s competitiveness, according to the Minister of Finance.

The Minister of Finance Apisak Tantivorawong has said in the seminar “Revenue Department’s policy towards gold shops tax” that the government is now considering the establishment of a free trade market in Thailand for products such as gold, jewellery, and accessories by reducing the tax to 0%, extending the tax exemption to some items currently under taxation.

He has said this policy will be concluded in the near future, and will help strengthen Thailand's capability to appeal to gold and jewellery traders, and increase the nation’s competitiveness towards being the world’s center of gold and jewellery trade.

He has assured the scheme will yield more benefits from the increased income, despite receiving less tax money.

The Ministry of Finance is now encouraging gold shops to operate using single account according to the government’s policy to improve the performance of business, and increasing their businesses’ credibility when taking loans, and help provide small businesses with better access to capital.


-- NNT 2016-03-07

[ezzra]

If there ever were an industry in Thailand that need to pay tax than it would be the above gold and jewelry

industry, this decision is very questionable to say the least and I'm one to know as by business background

is that industry where there's more than enough revenues and bottom-line profits.....

I'm sure that there are other business type that can use this bonanza windfall.......

[kinmaew]

and they wonder why they have no money, Farang rich Thai poor? Seems the well connected elite like the gold business therefore they dont have to pay, get someone else to foot the bill

[tbthailand]

it begs the question "why", and "for whom".

The excuse of "competitiveness" doesn't pass the sniff test...

[shirtless]

The elite here must be into it , another policy that fails the people.

[leeneeds]

If a business has to pay less or no tax, what margins are left will come down to each store owners particular circumstances on building loan or rent business loans, etc , before they can then figure out if any benefit to the local market can be passed on,

I know the Thailand peoples love gold, now the smarts and competitiveness of each store owner will see what savings can be passed on to the locals ,i(f any) as gold is fixed to a market price, across the globe,

[clockman]

All that glitters is not gold!

[Guest]

Transfer of wealth formula:

W = Windfall
H = Envelope
Y = Color of envelope

(W/2) = HY

[BuaBS]

Seems fair. Gold is money , and you shouldn't tax money. Even in the nanny states of europe , there is no tax on investing grade gold. It would be more logic that bars & coins stay tax free but juwellery be taxed , but in Thailand little pieces of jewellery are considdered the same as investments like coins & bars. Of course no tax on anything would be even better.

[maoro2013]

Are they talking about VAT or income tax?? The post leaves a lot of necessary information out.

[SOUTHERNSTAR]

As background, Thailand exports gold jewellery to countries like India. At present these exports are subject to 7% VAT. I think what they are trying to say is that they want to create a free trade zone in which traders can in and export gold without paying the 7% VAT.

[timendres]

towards being the world’s center of gold and jewelery trade.

Too funny for words. Honestly, it never ceases to amaze.

He has assured the scheme will yield more benefits from the increased income, despite receiving less tax money.

Apparently, in Thailand, you can multiply by zero and still come up with a positive value...

[Mot Dang]

it begs the question "why", and "for whom".

The excuse of "competitiveness" doesn't pass the sniff test...

I this this endevour is to attract more of the Chinese tourists to buy gold in Thailand. They have always been a big gold consumer, right down to their dental work,

[aRobotnamedWAR]

i believe the only people who should be taxed are the poor, rich people dont need to tax expensive stuff, its already expensive. but stuff like food and bread they can be tripple 300% taxed and still be under 100 b. how affordable is that?!! so little money. Tax things for the poor.

but my gold, its already 100,000 baht necklace so i cant pay the 300% on that... thats crazy and doesnt make sense. I hope they do this for Prada, Channel and YSL. a skirt shouldnt cost 80,000baht. BUt you should tax the poor people clothes double and it will still be under 200Baht. WIn win. right?

(if you cant feel the tone above, may i recommend you have a westerner read it for you)

Please Finance Ministry... CONTINUE TO DO YOU INSIDER TRADING... The evidence is all there, and the people you lie too, well, they dont really like to obey thai laws, good luck with that. BUt you cant trick gold prices. ... but you can trick gold shops...

[mango66]

LOS !!

The reach one again free of tax,

only pribe and net profits for the reach ones !!

Or when you bought last time gold and jewelries ??

[ozyjon]

'' to increase the nation’s competitiveness ''

I've been waiting for this one, finally in my mind

a genius decision if they can pull it off, it's all

about the GOLD and how much of it is in the country.

I urge you to educate yourselves by watching RT,

the Max Keiser report, it will put all into perspective.

Watch Episode 879

https://www.rt.com/shows/keiser-report/333339-episode-max-keiser-879/

How much gold in Fort Knox ?

In the 60's gold was $35 an ounce, it could be re-valued to $4200 an ounce in the near future ?

[stickylies]

Kin khao yang?

[Praematura]

The Thaitanic is sinking. Only thing keeping afloat is handouts to the masses. Rubber subsidies in south, rice in north and this no tax for elites.

[DrTuner]

Of course. Just check who owns the shops around here.

[technologybytes]

I see the mention of a single account to her qualify for loans etc... I thought gold deals were all cash,