Ekniti says revised TISA rules will be submitted to Cabinet this month
Finance Minister Ekniti plans to overhaul Thailand’s Individual Savings Account (TISA), with new long-term tax incentives for low- and middle-income savers.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said on Thursday that the Finance Ministry will amend the savings rules under the Thailand Individual Savings Account (TISA) scheme to promote retirement savings, and will submit the revised framework to the Cabinet within this month.
Ekniti said he expected the amended TISA rules to be approved by the Cabinet in time to take effect next year.
TISA overhaul to support ageing society
Ekniti said encouraging people to save for retirement under the TISA scheme was essential as Thailand moves into an ageing, or “grey”, society.
He said low- and middle-income earners in particular needed to be encouraged to save for retirement, and that tax incentives under the TISA programme would be crucial in persuading more people to build up long-term savings.
Old tax-incentive funds ‘distorted the market’
Ekniti noted that earlier schemes that used tax breaks to encourage people to buy units in Long-Term Equity Funds (LTFs) and Thailand ESG Funds were short-term measures that distorted the market and left savers facing losses of 25–30%.
He added that the LTF and Thailand ESG schemes did not generate genuine long-term savings, while the state also lost about 40 billion baht in tax revenue.
As a result, the Finance Ministry now wants to rely on revised TISA rules to encourage low- and middle-income earners to save more effectively.
The idea of allowing TISA participants to deduct 1.2 times their TISA contributions from taxable income was only a preliminary proposal, he said, adding that he is open to further opinions to ensure the new rules are fair and genuinely benefit low-income people.
Single 800,000-baht tax-deduction ceiling
Ekniti said the key principle of TISA is that it will be a permanent, long-term measure, allowing people to plan their savings on a continuous basis.
All tax-deductible allowances will be consolidated under a single ceiling of 800,000 baht, covering equity funds, Thai stocks, pension insurance, provident funds (PVD), the Government Pension Fund (GPF), the National Savings Fund (NSF) and other eligible assets, in order to increase flexibility.
The current rule that limits fund purchases to no more than 30% of income will be scrapped so that low-income earners with strong saving discipline can save as much as they wish without being constrained by their salary base.
New bonds and flexibility for small savers
In addition, “Savings Plus” bonds will be issued so that the general public can more easily buy government bonds via mobile applications, with subscriptions open every month and the option to redeem at any time to maintain liquidity. TISA assets will also be allowed as collateral for loans.
“This reform will overhaul the country’s financial infrastructure. I confirm there is no political motive – we want to lay the foundations for long-term financial security for Thai people. We do not intend to deprive anyone of existing benefits, but to spread opportunities to ordinary people and end the cycle of past distortions. I am ready to listen to all views in order to fine-tune the details before submitting the proposal to the Cabinet within December, so it can take effect for the 2026 tax year,” Ekniti said.
