Tax ceiling stays at 35%
The Cabinet yesterday agreed with the Finance Ministry's proposal to keep the personal-income-tax ceiling at 35 per cent next year but lower it the following year to boost Thailand's competitiveness against neighbouring countries.
"The extension does not include the lowering of the ceiling because the Revenue Department is still considering a new tax structure that is expected to be effective by 2017," Finance Minister Apisak Tantivorawong said.
The government wants to lower the seven brackets of personal-income-tax rates so that the country can attract more foreign investment.
The ministry is studying whether to lower the tax ceiling or adjust the number of tax brackets.
Currently, individuals earning less than Bt150,000 per year are exempt from income tax, while those making more than Bt4 million per year fall into the top 35-per-cent bracket.
Deputy Finance Minister Wisudhi Srisuphan said personal-income-tax rates should be made more consistent with the corporate income tax, which has already been brought down to only 20 per cent.
The Cabinet also approved other measures.
The City Plan Act would be amended to allow for an increase in Map Ta Phut’s investment area from 25,000 rai to 35,000 rai (5,600 hectares) to facilitate the expansion of factories there.
Zoning will be applied more strictly. There will be areas designated for green spaces, housing, processed agriculture products, large factories, power plants and renewable energy facilities.
The current master plan is an obstacle to investment in the country’s largest industrial estate.
The exclusion of environmentally unfriendly industries and projects that do not pass the environmental impact assessment stage will also be lifted to add flexibility for investment in the industrial park, Industry Minister Atchaka Sibunruang said.
The free bus and train policy for low-income earners was extended for another six months from November 1, as the Transport and Interior ministries need more time to collect information on low-income earners.
The government will have to compensate the State Railway of Thailand Bt504 million and the Bangkok Mass Transit Authority with Bt1.573 billion for the six-month policy.
The Transport Ministry is developing a single public-transport ticketing system to increase the effectiveness of tax collection and of government measures by better targeting assistance for low-income earners.
The transport pass will be incorporated into the national identification card.
