Finance Ministry finally decided to suspend indefinitely the plan to tax on share sales in the Stock Exchange of Thailand (SET) after the Federation of Thai Capital Market Organisations (FETCO) recommended the government to review the plan.
Finance Minister Arkhom Termpittayapaisit said the Secretariat of the Cabinet has returned the draft on taxing transactions on SET to the Finance Ministry after FETCO send the objection letter to the government. He said the Ministry of Finance has to reconsidered the tax plans and delayed to enforcement of the rules.
Mr Arkhom said the Finance Ministry have to start the process from the beginning again as a taskforce will be appointed to review the draft and make adjustments based on FETCO’s recommendations. The government earlier planned to enact the rules in May this year.
In November, the cabinet approved levying the tax, which had been waived for the past 40 years.
If the tax is levied, SET investors would eventually have to pay 0.11% per share sold. However, in the first year, they would pay 0.055% per share sold.
The Finance Ministry expected the new tax will generate between Bt16 billion-Bt18 billion annually for the government.
FETCO earlier warned that levying the tax would drive foreign investors away from the SET and reduce liquidity in the market. (TNA)
