Kittiratt promises incentives will stay

Kittiratt said on Wednesday that he did not agree with the former finance minister who wanted to end tax deductions for those investing in retirement mutual funds (RMF) and longterm equity funds (LTF). 

While in office, Thirachai Phuvanartnaranubala planned a reform to the incentives, which are criticised for favouring the rich.

After meeting with top executives of the Stock Exchange of Thailand this morning, Kittiratt said that the incentives are for everyone.

 

An investment of up to Bt500,000 in LTF (inclusive of provident funds or contribution to other obligatory saving schemes) is tax deductible, on condition that the investment is held for at least five calendar years. This incentive will end in 2016.

For investments in RMF, no end is set for the tax benefit. Savers can deduct individual taxable income of up to Bt500,000 for investment in RMF combined with savings in provident funds and pension funds.

Should these incentives end, the government would offer other tools to promote national savings, he said.

At the end of February, outstanding investments through the two types of funds stood at Bt246.89 billion, up by Bt48 billion or 24.33 per cent from the same period last year. Of the total, Bt149.75 billion is invested in LTFs.

Charamporn Chotikasthira, president of Stock Exchange of Thailand, said that during the meeting, the exchange proposed more tax incentives to firms listed on the secondtier bourse, Market for Alternative Investment (MAI), in order to encourage more listings from provincial SMEs. He said that as the government will cut corporate tax to 23 per cent this year, MAIlisted firms should enjoy a lower rate.