Education Minister Teerakiat Jaroensettasin is questioning tax exemption privileges for schools after an international school operator went public in the stock market.
"The Private Schools Act allows private schools to enter the stock market. But questions should be raised if it's ethical for a company that owns a private school to enter the stock market while it is exempted from paying taxes," he said.
Mr Teerakiat said the government does not collect tax from education institutions as they are providing a much-needed service, but when an operator of a school goes public, it becomes a profit-oriented business.
"It's like hospitals, they must pay taxes too," he said, before adding that if education institutions remain tax-exempt, other operators may follow suit to make more profit.
SISB Co Ltd, which manages Singapore International School in Thailand, has become the first education institution to be listed on the SET this year, with an IPO of 260 million shares.
It will be traded in the Market for Alternative Investment (MAI) starting Thursday.
"Personally, I wonder if it is right for a business -- education institutions in particular -- which is tax-exempt to raise funds to make more profit, as it means the amount of potential tax exempted will also increase," he said.
Mr Teerakiat added that if an education institution enters the stock market, it should be taxed by Finance Ministry.
He also said he had asked Usa Somboon, president of International Schools Association of Thailand, to discuss it with other members of the association.
Chalam Attatham, secretary-general of the Office of the Private Education Commission (OPEC), said Section 22 of the Private School Act does not prohibit school operators from entering the stock market.
However, it stipulates the conditions on the ratio of shareholders, and that the majority of the shares must be owned by Thai nationals.
He said the committee on the promotion of private education in September already discussed the legality of SISB entering the stock market, and agreed that it was legal for SISB to do so, but the company must ensure that the majority of the shares are held by Thai citizens.
Mr Chalam said the law contains a list of steps that education institutions must abide by. If a school operator fails to follow the steps, the school operator may be hit with penalties, and/or prohibited from enrolling new students.
On Wednesday, Democrat Party secretary-general Juti Krairiksh called on Prime Minister Prayut Chan-o-cha to revise the policy that allows education institutions to enter the stock market.
"It's government policy to reduce the gap between the rich and the poor. The policies of the SET, its board and the Finance Ministry should also be reviewed. Otherwise, universities and private education institutions will rush to the stock market, which may result in higher tuition fees, thus limiting the poor's access to good education," he said.