Paopum Rojanasakul, secretary to the finance minister, announced the retraction of the ministry’s statement. original plan Imposing a financial transaction tax. This comes after Sirikanya Tansakul of the Forward Progressive Party (MFP) advocated a medium-term fiscal blueprint for the ministry with projected revenue for 2024. 14 billion Baht will be added from the proposed tax.
Paopum explained that the ministry aims to ensure that Thailand’s capital market maintains high liquidity, stability, trading volume and quality, and maintains low funding costs. These factors are essential to attracting investors and registered companies.
Mr Paopum also emphasized the importance of the competitiveness of Thailand’s capital market against international markets, especially Singapore. Tax incentives for stock markets are essential to foster this competitiveness and support long-term investment. As a result, the department dropped the idea of a transaction tax.
Our goal is for the Stock Exchange of Thailand to expand and become a cornerstone of the economy, promoting a private sector-led economy, Papoum said.
Excluding the impact of the digital wallet policy, the ministry is confident of achieving the target revenue through economic growth and efficient tax collection.
Rojanasakul expects the government’s digital wallet plan, scheduled to launch in the first quarter of next year with a budget of 560 billion baht, will stimulate currency circulation. This is expected to generate approximately 100 billion baht in tax revenue from value added tax and corporate income tax.
Director-General of the Fiscal Policy Department Porchai Thirabedja asserted that the government’s fiscal plan for 2024-2027 estimates revenue in 2024 to be 2,787 billion baht, an increase of 30 billion baht.
Fiscal expenditure is expected to be 3.48 trillion baht, resulting in a budget deficit of 693 billion baht. Mr Tiravella acknowledged that the initial forecast included 14 billion baht in revenue from the proposed financial transaction tax.
The Bangkok Post reported that whether it is possible to impose such a tax under the 2018 Fiscal Discipline Law remains to be evaluated.
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