The government remains committed to tax reform, but insists implementation as a comprehensive package encompassing value-added tax (VAT), corporate income tax and personal income tax to enhance the country's competitiveness while minimising the impact on vulnerable groups.
According to Deputy Finance Minister Julapun Amornvivat, the ministry has not made a final determination on the matter.
Options need to be prepared and presented to the authorities to consider, including an assessment of the potential impact on taxpayers and a timeline for reform, he said.
Mr Julapun said the Finance Ministry is studying VAT reforms and has not made a decision on changes.
Regarding the financial transaction tax on stock trades, proposed by the Prayut Chan-o-cha administration but not yet enacted, Mr Julapun said he has no intention of implementing the tax.
In terms of personal income tax deductions, he said he has no plans to eliminate any deductions because doing so would have broad impacts.
Meanwhile, the study on implementing a negative income tax (NIT) system in Thailand is under review, said Mr Julapun.
The study outlines three possible approaches: consolidating all welfare programmes into the NIT system; incorporating specific welfare programmes into the NIT; or gradually phasing the welfare programmes into the NIT system.
The NIT attempts to address poverty and inequality in society by incentivising work.
If an individual's income is below a specified threshold, the NIT concept has the government provide a certain amount of financial support.
As their income increases, the government offers them incentives by granting additional support.
This phase is known as the phase-in period until the individual's income reaches a certain point, at which the level of government assistance remains fixed.
If the individual's income surpasses the minimum threshold, the government ceases support.
This concept was proposed by the Fiscal Policy Office a decade ago.
The NIT is often dubbed a "workfare" system requiring individuals to work and participate in the tax system, in contrast with the welfare system where individuals may receive state benefits without working, such as Thailand's state welfare card programme.
The NIT system also integrates individuals into the tax base, as recipients of government subsidies must file their income with the Revenue Department for verification.
In the short term, the government may not generate tax revenue from these individuals. Once their income increases and they no longer qualify for government subsidies, personal income tax should eventually apply and the Revenue Department has a database of these individuals' income, noted the ministry.
