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Stock trading tax would damage SET’s competitiveness: ASPS

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The governments move to collect tax on stock trading would affect the Stock Exchange of Thailand (SET)s competitiveness, Asia Plus Securities (ASPS) said on Wednesday.

Earlier this week, Bloomberg and Reuters reported that Thailand is considering a tax of 0.11 per cent on share sales of more than 1 million baht per month by individual investors.

ASPS said the government has suspended such tax collection since 1991.

The Fiscal Policy Committee and SET have declined to comment on the tax, it added.

"FPO director-general Kulaya Tantitemit said her office cannot reveal which tax was being considered by the Finance Ministry, but said the improvement will help enhance the country's competitiveness," ASPS said.

"Meanwhile, SET president Pakorn Peetathawatchai refused to comment on this case, saying the SET had no authority to make a decision."

ASPS said the tax would generate revenue of up to 20 billion baht per year from high-worth investors who trade up to 3 million baht per month.

"The government can generate about 12 billion baht based on transactions of 11.3 trillion baht in the first half of this year,” ASPS said.

However, ASPS said taxing stock sales would affect SET's competitiveness as returns on investment would drop due to higher transaction costs, triggering a decline in transactions.

"We have to wait for government agencies to clarify this case, but we believe that they will not implement guidelines soon," ASPS added.

Published : July 07, 2021

By : The Nation