The Thai cabinet decided today (Tuesday) to revoke a law, which has been in force for more than three decades, exempting stock market share trades from financial transaction tax.
Finance Minister Arkhom Termpittayapaisith said that the abrogation of the law means that all trading of stocks on the stock market, whether at a profit or loss, will be subject to a financial transaction tax of 0.1%.
He said that the government is expected to gain at least 15 billion baht a year from the tax, adding that the Council of State will have to draft a law to impose the tax. Share traders will be given a 3-month grace period before the law comesinto force, following its publication in the Royal Gazette.
The minister said that the new tax is part of restructuring, to enhance financial discipline and generate income for the state.
Meanwhile, Revenue Department Director-General Lawaron Saengsanit said that 0.1% is just the ceiling rate and the actual rate has not yet been set.
He added, however, that the seven types of Retirement Savings Funds remain exempt from financial transaction taxation.
Dr. Pakorn Peetathawatchai, president of Stock Exchange of Thailand, said he will hold discussions with the Association of Securities Company about the system adjustments required to accommodate the taxation, the collection of which brokerage companies will undertake, before passing the money on to the Revenue Department.
Source: ThaiPBSWorld