Finance Ministry delays stock transaction tax

Finance Ministry delays stock transaction tax

Finance Minister Arkhom Termpittayapaisith
Finance Minister Arkhom Termpittayapaisith

The Finance Ministry will postpone enacting a financial transaction tax on individual stock investors this year until economic conditions are more favourable, says Finance Minister Arkhom Termpittayapaisith.

He said many economies are struggling because of the impact of the prolonged pandemic and the Russia-Ukraine war, with the latter driving up the global crude oil price and inflation.

Earlier Mr Arkhom vowed the ministry would continue with implementing the tax this year, saying it was the right time.

Now he said the Thai economy is on a gradual recovery path, led by strong exports.

Foreign tourist arrivals dropped 90% in recent years because of the pandemic. Thailand expects 7 million foreign visitors this year, in part thanks to the country's reopening.

The financial transaction tax applicable for share sales by individual investors trading on the Stock Exchange of Thailand has been on the books for around 30 years, but has always been waived to support market development.

The financial transaction tax is 0.1%. In addition to the transaction tax, investors are subject to a related local tax, which brings the total to 0.11% of the share sale.

Regarding local inflation, Mr Arkhom said the government's short-term measures to tame high prices include providing assistance to targeted groups.

The state's long-term plan comprises focusing on promoting renewable energy, he said. The government will also focus on using digital technology and supporting high-tech startup businesses to drive economic growth, said Mr Arkhom.

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