Heirs of the country's 50 richest people will shoulder almost 300 billion baht in estimated payments if the inheritance tax takes effect.
The figure is based on a combined US$97.2 billion in wealth for Thailand's 50 richest in 2014 surveyed by Forbes magazine and a 10% tax rate for assets worth more than 50 million baht, Prof Duangmanee Laovakul of Thammasat University's economics faculty told a seminar entitled "Inheritance Tax: Who Has, Who Pays, Who Benefits?"
Taking the Chirathivat family as an example, recipients of the family's bequest could be liable for inheritance tax of 38 billion baht, assuming the family's wealth is $12.7 billion.
Agribusiness tycoon Dhanin Chearavanont and family has wealth of $11.5 billion, so his heirs could be taxed up to 34.4 billion baht, while liquor tycoon Charoen Sirivadhanabhakdi's wealth of $11.3 billion could mean a tax bill of 33.8 billion baht. Chalerm Yoovidhya's heirs would be subject to a 29.6-billion-baht tax for assets worth $9.9 billion.
Krit Ratanarak's heirs could be charged 15.2 billion baht in tax for assets worth $5.1 billion.
Prof Duangmanee said Thailand had a high level of wealth concentration, as 22.5 million rai of land plots, which is 23.7% of 95 million rai of land with title deeds, were owned by 159,000 people, with some landlords owning up to 631,000 rai of land each.
Government revenue would increase by 30-40 billion baht if the land and buildings tax took effect, replacing the local development tax that generates only 25 billion baht, she said.
The Treasury Department needs time to appraise more than 30 million plots nationwide before the new tax comes into force.