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Thailand Repeals 30 Year Law Exempting Tax on Stock Trades

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Thailand’s lawmakers on Tuesday decided to repeal a law that had been in effect for more than 30 years and exempted stock market share trades from financial transaction tax.

According to Finance Minister Arkhom Termpittayapaisith, the repeal of the law means that all stock market trading, profit or loss, will be subject to a 0.1% financial transaction tax.

He stated that the tax is expected to generate at least 15 billion baht per year for the government, and that the Council of State will be required to draft legislation to implement the tax. Following the publication of the law in the Royal Gazette, share traders will be given a three-month grace period before the law takes effect.

According to the minister, the new tax is part of a restructuring effort to improve financial discipline and generate revenue for the government.

Meanwhile, Revenue Department Director-General Lawaron Saengsanit stated that the 0.1% is only a ceiling rate and that the actual rate has yet to be determined.

However, he added that the seven different types of Retirement Savings Funds are still exempt from financial transaction taxation.

Dr. Pakorn Peetathawatchai, president of the Thai Stock Exchange, stated that he will consult with the Association of Securities Companies about the system adjustments needed to accommodate taxation, which brokerage firms will collect before passing the money on to the Revenue Department.

Source: Thai PBS

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