Government should study carefully before increasing taxes
on stock profits from the Stock Exchange of Thailand (SET), according to
Federation of Thai Industries (FTI) chairman, Payungsak Chartsutipol.
Earlier, Securities and Exchange Commission (SEC)
secretary-general, Thirachai Phuvanatnaranubala, said that the agency would
advise the new government to raise such taxes from 10 percent at the present
level to a ‘progressive’ rate so that it could bring new revenue to support
implementation of populist policy.
Payungsak said that thorough study and analysis should be
conducted on the proposed increase in the levy on profits earned from
investment in the stock market. Also, repercussions of the tax hike should
be evaluated.
He said case studies on capital markets of other
countries should be considered as well so that local investors realize the
importance of long-term investment to gain higher dividends.
Asked to comment on the new government’s need to seek
more revenue sources to support its populist policy, he said it should
review policies that focus on handouts because they could cause a negative
impact in the long run.
The FTI chief said the small, medium, and large
industrial sectors had contributed to prosperity of the country through
paying a huge amount of taxes, but they received only a small amount of
money in support for the industrial development in return.
So, they want the new government to consider increasing
funding support for the industrial sector, he added. (MCOT online news)
The Federation of Thai Industries (FTI) chairman Payungsak
Chartsutipol last Friday voiced concern over efforts by political parties to
count on wage hike policies to attract votes in the upcoming general election.
He said the policy, if implemented without caution, would distort the wage
market mechanism.
Normally, a minimum wage increase must be considered by the
tripartite committee composed of the employee organization, employers, and the
government.
No matter the result, he said, businesses are ready to comply
since the decision is made based on the market mechanism and actual costs.
Should the wage increase as a result of the political
campaign, he said, it would increase production costs, which would eventually
lead to higher product prices.
The FTI chairman noted the minimum wage hike, which took
place early this year, had pushed up product prices at a higher level than they
should be when compared with the increased wage.
Currently, Payungsak said, members of the FTI employ more
than 10 million workers, the highest in the country. Therefore, it does not want
politicians to use wage hikes in their political campaigns. (MCOT online
news)
