The Ministry of Finance postpones the tax on stock market transactions

Arkhom Termpittayapaisith, Minister of Finance

The Finance Ministry will postpone the enactment of a financial transaction tax for individual equity investors this year until economic conditions are more favorable, Finance Minister Arkhom Termpittayapaisith said.

He said many economies were struggling due to the impact of the prolonged pandemic and the Russian-Ukrainian war, the latter driving up the global price of crude oil and inflation.

Earlier, Mr Arkhom promised the ministry would continue to implement the tax this year, saying it was the right time.

He has now said Thailand’s economy is on the path to a gradual recovery, driven by strong exports.

Foreign tourist arrivals have dropped by 90% in recent years due to the pandemic. Thailand is expecting 7 million foreign visitors this year, partly thanks to the reopening of the country.

The financial transaction tax on sales of shares by individual investors who trade on the Stock Exchange of Thailand has existed for about 30 years, but has always been removed to support market development.

The tax on financial transactions is 0.1%. In addition to the transaction tax, investors are subject to a related local tax, bringing the total to 0.11% of the sale of shares.

Regarding local inflation, Mr Arkhom said the government’s short-term measures to rein in high prices include helping targeted groups.

The state’s long-term plan is to focus on promoting renewable energy, he said. The government will also focus on using digital technology and supporting high-tech startups to drive economic growth, Arkhom said.