Inheritance tax would be an embarrassment for Thailand

First, proclaiming that inheritance tax (IHT) is a tool for “combating social inequality” is naive. Even the finance minister himself says it is a gimmick and has no substance. 

Second, to state that other countries levy IHT of 40-50 per cent is a myth. The reality is that rich and far-sighted individuals hardly pay any IHT because of the laws allowing trustees to look after their wealth. A 50-per-cent rate might be on the statute books, but no one pays that rate. Singapore abolished death duty in February 2008.

Third, only a handful of countries in the world still maintain IHT, mainly for historical reasons and political sensitiveness. Many have already abolished IHT and not a single country has introduced 6the tax in this globalised world. IHT still applies in only a few states in the US and some are on the way to abolishing it.

Fourth, it encourages people, especially tax planners, to think and behave deviously. Since IHT began being mulled here, title deed transfers at the Land Department have doubled – mainly from fathers to their sons and daughters. The move could have an adverse social effect as more assets are managed by youngsters. 

Finally, IHT is in truth a death duty that becomes payable upon death. It is macabre for any government to introduce this tax, when examples from other countries show it has no value either economically or socially.

I have no personal concern about this tax because I know the ways out. My concern is that introducing it would make our country a laughing stock in the eyes of others.

Songdej Praditsmanont

Bangkok