Most institutional investors must pay stock tax, says govt spokesman

Most institutional investors must pay stock tax, says govt spokesman

Share price movements at Asia Plus Securities' headquarters on Sathon Road, Bangkok. (File photo: Pornprom Satrabhaya)
Share price movements at Asia Plus Securities' headquarters on Sathon Road, Bangkok. (File photo: Pornprom Satrabhaya)

Most institutional investors in Thailand will not be exempted from a tax levied on stock transactions that will resume next year after more than three decades, authorities said.

While pension funds and market makers will not have to pay, other institutional investors must do so, government spokesman Anucha Burapachaisri said in a statement Saturday.

Thailand defines institutional investors that will be subject to the levy as individuals trading on their own accounts, funds other than pensions, and securities companies, which are not market-maker accounts, he said.

Reports on exemptions for institutional investors are "misleading", Mr Anucha said.

A tax of 0.05% will be imposed on stock transactions, which will be raised to 0.1% sometime in 2024, according to a Finance Ministry document this week after the cabinet approved the policy. The levy will initially take effect 90 days after it is notified in the Royal Gazette.

Thailand halted the tax in 1992 to help promote equity trading.

The spokesman said the level was similar to or lower than in other Asian countries. The government expects to generate about 8 billion baht (US$230 million) in revenue in the first year, which may double to 16 billion baht per year when the levy is raised.

Finance Minister Arkhom Termpittayapaisith said on Friday that the reimposition of a financial transaction tax on share sales in the local stock market will create fairness in tax collection and reduce inequality, and should not have a big impact on the market.

"The tax will not affect the development of new products in the stock market and savings for retirement," he said.

Finance Minister Arkhom Termpittayapaisith says revival of levy will lead to more fairness in tax collection without harming bourse. (Photo: Sirivish Toogmum)

The Stock Exchange of Thailand (SET) has a market capitalisation of around 20 trillion baht, up from around 900 billion baht in 1991. 

The market has around 5 million stock trading accounts, of which 1 million are active.


Do you like the content of this article?
COMMENT (2)

Thailand improves in corruption survey

Thailand has improved by nine places to 101st out of 180 countries in the 2022 Corruption Perceptions Index from 110th in 2021, Transparency International (TI) said on Tuesday.

31 Jan 2023

Anutin posters cause a stir

The Pheu Thai Party on Tuesday joined a call for the Election Commission (EC) to look into posters erected at many state-run hospitals depicting Public Health Minister Anutin Charnvirakul.

31 Jan 2023

Court lets 'Pinky' remove electronic tag

Actress Savika “Pinky” Chaiyadej on Tuesday won approval from the Criminal Court to remove an electronic monitoring (EM) device she was required to wear after her release from jail on Nov 30 last year.

31 Jan 2023