Wealthy could lose some tax-deductible privileges
Determining that the wealthiest Thais – the top 20 per cent of the population in terms of income – are claiming up to Bt2 million in tax rebates each annually, the Revenue Department is considering eliminating some of their deductible expenditures.
Director-general Ekniti Nitithanpraphas said on Friday (October 4) that middle-income earners could also soon see relief from their tax burden.
“We are reviewing the suitability of each tax deductible and exemption item after seeing that the maximum Bt2 million in tax rebates is usually claimed by the top 20 per cent of the population,” he said.
“A Bt500,000 investment in a long-term equity fund is eligible for a 15-per-cent tax reduction, for example,” he said. “Rich people benefit most from this since they can easily spend that much to buy into a fund.
“If we were to reduce tax deductibles for the rich, we should be able to increase tax breaks for middle-income earners, thus reducing the burden on the largest group of taxpayers,” Ekniti added.
Eleven million citizens file tax reports annually, but only 4 million have to pay any taxes, while the rest are exempt because their income is less than the minimum – Bt26,583 per month – on which tax must be paid.
The Revenue Department has compiled a list of more than 20 deductible items to help lessen the average taxpayer’s burden. These include personal expenses, child and parent support, life-insurance premiums and interest from property loans.