Cabinet to consider tax cut proposal in October
The Finance Ministry will submit the corporate tax cut proposal for the Cabinet's approval in October, expecting the cuts to take effect on Jan 1, 2012.
Deputy Finance Minister Boonsong Teriyaphirom said that the Revenue Department is finishing details of the plan to cut corporate tax rate from 30 per cent to 23 per cent.
He noted that thorough review is necessary given that the cut involves a number of government agencies and legal amendments. After the Cabinet's approval, the proposal would be subjected to screening by the State Council before forwarded for parliamentary approval.
He admitted that the tax cut would slightly affect government revenue, but there is optimism that more companies would be encouraged to pay taxes. Moreover, with lower financial costs, Thai companies' competitiveness would rise and hence benefit the economy.
He added that there is no discussion whether the value-added tax should be increased from 7 per cent. However, the tax structure overhaul is underway and the study should be completed in 2012.
