'Most' institutions will face share-sale tax

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

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

The regulation 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 about exemptions for institutional investors were “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 released this week after the cabinet approved the policy.

The levy will initially take effect 90 days after it is published in the Royal Gazette. The government halted the tax in 1992 to help promote equity trading.

Mr Anucha said the level was similar to or lower than similar taxes imposed in other Asian countries. The government expects to generate about 8 billion baht 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 the tax would create fairness in tax collection and reduce inequality, and should not have a big impact on the market.