BANGKOK, 28 March 2012 – The Fiscal Policy Office (FPO) is set to propose restructuring guidelines for the country’s tax system to Deputy Prime Minister and Finance Minister Kittiratt Na Ranong during the coming week.
FPO Director-General Somchai Sajjapongse has disclosed that the proposal to be submitted to Mr. Kittiratt will include the reconstruction guidelines for revenue and excise taxes. Based on the principal of suitability and fairness, the adjustments are intended for taxes such as income, value-added, alcohol, tobacco and land taxes.
Meanwhile, the FPO will request permission to increase liquor and tobacco taxes in order to compensate for the loss incurred by the diesel excise tax cut, which costs Thailand approximately 9 billion baht per month.
Meanwhile, Mr. Kittiratt has reiterated that property tax is not a priority on the government’s agenda given the opinion that tax should be collected from an individual’s increased income instead of from a person’s property ownership.