The National Legislative Assembly on Thursday passed the Inheritance Tax Bill in the first reading by a vote of 160-16 with 10 abstentions.
The bill seeks to impose a 10% levy on bequests of more than 50 million baht.
Taxable assets include residences, land, vehicles, bonds, equities and deposits at financial institutions. Non-registrable assets such as jewellery, amulets and luxury watches are excluded.
The inheritance tax would be levied on those who receive assets worth more than 50 million baht from a deceased person.
The first reading vote followed a debate by NLA members. Most of them expressed concern that it might put a heavy burden on recipients of an inheritance, who might not be able to pay the tax.
Assembly member Pradit Wannarat said a survey showed 12 out of 25 countries collecting inheritance tax had stopped doing so because it was not cost-effective. They included Australia, Canada and New Zealand, he said.
Finance Minister Sommai Phasee, in defending the bill, said the tax is intended to create social justice and distribute wealth controlled by a small group of people, to help develop the country.
A 25-member committee was set up to scrutinise the bill and report back in 90 days for the second reading debate.