Finance Ministry weighs gold tax to trace grey capital flows
Thailand is studying a modest gold transaction tax to trace trades and curb money laundering, with industry consultations due soon
- Thailand's Finance Ministry and central bank are considering a tax on gold transactions to combat money laundering and track "grey capital" flows.
- The primary goal of the proposed tax is not to generate revenue but to create a record of transaction data, as authorities currently lack information on who is buying and selling gold.
- The tax rate is expected to be low to avoid undermining Thailand's position as a regional gold-trading hub, and officials will consult with the Gold Traders Association.
Thailand’s Finance Ministry and the Bank of Thailand (BOT) are studying a possible tax on gold transactions to close regulatory gaps and prevent criminals and “grey capital” networks from using the market to launder money.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the proposal was not intended to generate additional revenue for the government. Its main purpose would be to give authorities access to transaction records and identify those buying and selling gold.
“Our aim is not to raise revenue. We want transaction data because we are serious about tackling grey capital,” Ekniti said. “At present, no one really knows who is buying and selling gold, or how.”
Tax options remain under consideration
Officials are considering a transaction tax that could apply to trades in the gold market or to imported gold that is not processed into jewellery and is generally used for speculation.
Ekniti said any tax was unlikely to be imposed at a high rate because the objective was to create transaction records rather than raise substantial revenue.
No final tax rate, collection mechanism, threshold, exemptions or implementation date have been announced.
Digital assets also under scrutiny
The government’s efforts to trace financial flows and prevent money laundering are not limited to gold.
Ekniti said the Securities and Exchange Commission (SEC) and the BOT were also working together to monitor transaction data involving digital assets.
Government expects limited impact on gold hub ambitions
Ekniti said he did not initially expect a modest transaction tax to undermine Thailand’s position as a regional gold-trading hub.
He argued that transaction monitoring was an international practice adopted in several countries and said the government would seek a balance between tighter oversight and the economic importance of the gold market.
The ministry plans to consult the Gold Traders Association shortly before deciding how any measure should be structured.
