The Ministry of Finance has indicated that individual stock investors can expect to face a financial transaction tax this year in response to local market expansion.
Finance Minister Arkhom Termpittayapaisith reiterated that his ministry would proceed with its tax collection plan, affirming that this year would be the appropriate time to implement it.
He noted that the Thai stock exchange has seen significant growth, having been spared much of the negative internal economic effects of the COVID-19 pandemic. He also emphasized that the tax has been absent for over 30 years.
While not specifying when the tax proposal will take effect, the ministry said it will notify the Stock Exchange of Thailand (SET) in advance of the tax collection plan, Minister Arkhom said. He added that the tax plan is already in place and is not a new one.
The ministry has already convened with representatives of the SET and the Federation of Thai Capital Market Organizations to discuss the situation.
Minister Arkhom said eliminating the tax exemption on shares sold on the local market should assist the government in increasing its tax base and generating additional revenue for national development.
He also estimated that the government would earn up to 10 billion baht annually from the move, adding that the ministry will submit for Cabinet approval a ministerial regulation authorizing the tax.
For more than 30 years, the government has waived its proposed tax on SET dealers to promote market development. In addition to the 0.1% charge, investors would be subject to a similar local tax, totaling 0.11% of share sales. (NNT)
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