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)