The strong confirmation of the Minister of Finance, Mr. Arkhom Termpittayapaisith

To have to collect "

stock sales tax"

in order to create equality in taxation like those who do general trading.

And the Thai stock market has grown significantly from the past.

The taxation of the sale of shares this time.

not new

But there has been an exemption from the sale of shares for more than 40 years.

The government has taken this seriously.

After the Cabinet has approved in principle the draft Royal Decree issued under the Revenue Code.

Regarding the reduction of specific business tax rates and determination of businesses that are exempt from specific business tax (No. ..) B.E. .... 

In the form of collecting tax from the sale of shares in the first year, namely 2023, will be collected at a half rate of 0.055% (including local taxes) and collected at full rate in the next year, namely 2024, will be collected at full rate at 0.11% (including local taxes), which must also be included in

Share sales fees and VAT make the first year at 0.195% and the next year at 0.22%. Now in the process of submitting the decree to verify the accuracy.

If announced in the Royal Gazette, it will be effective for 90 days, which is expected to be in mid-2023, according to the Ministry of Finance.

There is still time for investors to prepare.

And will not affect investment in the market.

while the investor side

especially small

It clearly shows its stance.

Disagree with stock sales taxation

to the point of making an appointment to stop stock trading transactions

in early December last year

to oppose the taxation of stock sales

The Federation of Thai Capital Market Organizations or FETCO

has exchanged views on this matter with people in the investment circles.

which provides a comprehensive and interesting perspective on the progress of collecting sales tax on shares

"Dr. Nonarit Phisonyabutr" senior academic

The Thailand Development Research Institute or TDRI

gives a view on this matter.

On the academic side of an economist

There are both agree and disagree. 

on the agreeing side

It is viewed as a matter of specific tax collection that has been refrained for a long time due to the state's desire to develop the capital market.

and is what the government has studied that

If collected, it will still be able to compete with foreign countries. Many countries collect similar or higher rates.

or some countries if not stored

There are other forms of taxation.

But there are also disadvantages!

 If we want to collect sales tax on shares

must look at the principles that will develop towards the goal, such as the development towards a welfare state

I want freedom like the United States.

But if the state really wants income

There are many more taxes.

that the state has not been able to collect according to the target, such as land tax, which still has a lot of inequality

It's an important thing that the state should do.

But let's get back to the simple things first.

Dr. Nonarit Phisonyabutr, senior academic

Thailand Development Research Institute (TDRI)

The capital market is not always the market of the rich.

But it's a market of opportunities.

 new generation who want to be successful

or want to have financial stability

which is not easy nowadays

A possible solution would be to use capital markets.

make the new generation come and invest properly

is part of raising the status

It is a place where life can be changed. 

Do not close the opportunity and pull money out of the capital market.

The taxation of stock sales will be part of the flow of money from the capital market.

 When the state collects taxes, it has to talk about its use.

which is still unclear about the value that will occur

What do you keep and do with it?

For example, compare with

new year gift policy

The government has extorted 16 billion baht from the capital market, which is like a long-term investment.

to stimulate the economy in the short term

In the past, it can be seen that the government sector has not used the capital market to its fullest potential.

especially about investment in preparation for entering an aging society

life after retirement

The capital market is an opportunity to make people who are not wealthy.

Able to adjust financial status

The mechanism that will make the country survive is to use the capital market.

From the estimate of collecting sales tax on shares to get 16,000 million baht

, "Dr. Nonarit"

sees that there is a chance that the income will be lower than the target.

because the money from investors, especially the high-frequency group that will disappear from the market by more than 30% when we decide that 

"It's not worth it.

There is no benefit in collecting sales tax on stocks at any time.

The more you collect during the economic times.

It will be a repeat.

make the economy worse.” 

While value-oriented investors or VI lines like

"Dr. Niwet Hemwachiravakorn"

give their perspective as someone in the market.

by comparison

sales taxation

like a small collection

when kept indefinitely

It may be exhausted.

"Dr. Niwet"

brings the tale of

the golden goose

to illustrate the picture.

What is going to happen to the Thai capital market?

It's like raising ordinary geese.

Raising and nurturing until one day this goose lays golden eggs. It is very valuable, but not immediately. Not enough to spend. Find a way, for example, plucking goose feathers to sell, but not enough. Gradually earning money.

Until he was depressed, he killed the goose to sell the gold in the goose's belly. It's no different with the Thai stock market.

who today is a star

All countries envy

Have good liquidity to invest

There are foreigners to invest

But if we think that collecting sales tax in the capital market, we don't collect much.

but if gradually kept for a long time

If there is an increase in other taxes, it will have an impact on investment and market liquidity. 

Dr. Niwet Hemvachiravakorn, value investor

What happened to the Thai capital market? When the market is good, there are people who want to bring stocks into the market, there are people who invest, and everything is transparent.

What happens is

A large tax base is on the stock exchange.

Most companies before entering the business market prefer to avoid taxes.

But when entering the stock market, they are ready to pay.

Because there is an opportunity to grow and have capital. On the other hand, when the market is lonely, good companies may not enter the market.

And in the future, if additional taxes are collected, such as capital gains tax

becomes an additional tax

may cause the market to stagnate

will be more damaged

Everyone in this industry, don't think that we don't trade, we won't suffer.

But in the end, it may have an impact someday.

because the market liquidity decreased

At this time, Thai investors themselves

began to turn to foreign investment

What many people think is

If you don't invest in stocks, what will you invest in that will grow enough?

to stay until retirement

Depositing money with the bank is not worth it.

facing inflation problems

It's a big problem that we still don't know how to solve.

More and more Thais retire

Finally, it's the government's burden.

This made the government

have to turn back to support the capital market more

Collecting sales tax on stocks may not be worthwhile and has enormous risks.

just the government signaling

Indicates that it will start execution.

already have an effect

And if continued with other tax collections, it may have a greater impact.

while

"Mr. Paiboon Nalinthrangkun"

President of the Investment Analysts Association

 Projecting a picture to understand the mechanism of the stock market, capital market, which is used as a source of funding, and today we have a capital market that is doing a good job.

when the company can enter the capital market

It will reduce dependency on commercial banks.

It is a part of supporting the credit market, financial market, giving us more economic blood vessels.

that large businesses can enter the stock market

There must be investors who bring money to the business sector to have liquidity.

And we have quite a variety of investors.

highly liquid capital market

It is an advantage to be able to raise funds for the business sector according to the required amount of money.

But what happened

from last year

There is a hundred thousand million traded per day, down to 3-4 billion baht per day.

Fundraising is sluggish.

Businesses will turn to raise funds through other channels.

The smaller the liquidity

The sales tax on stocks does not directly affect the fundraiser.

But it directly affects investors.

causing the market liquidity to decrease

There is a higher investment cost. 

must look back that

The fact that our home market has good liquidity

Half of them come from foreign investors.

This gives us the highest liquidity in ASEAN.

Taxation may cause the liquidity to disappear by half.

 Because the tax is higher than the fee rate that this group of investors used to pay in trading.

From the original payment of about 0.03% fee, today we are going to charge additional sales tax.

It increases costs.

It was impossible for him to invest the same amount.

And if it's not worth it

may move to invest elsewhere

If this group moves to invest elsewhere

It may cause the market's trading value to decrease further.

It is not possible for large companies to raise funds in the Thai stock market.

It may cause Thai companies to move into foreign markets with higher liquidity.

Paiboon Nalinthrangkun, President of the Investment Analysts Association

“If he thinks it's not worth it

Move investments to other sources

It might make us step back 20 years ago.”

There is a survey based on talking directly with foreign investors.

whether it is acceptable or not if Thailand collects sales tax on shares

Which, of course, no one lives, may not go at all.

What is worrying is

When liquidity shrinks

It's very difficult to get it back.

“No different from

shoot yourself in the foot

Let's walk slower.

  ”

but forgot to look into the distance 

We haven't reached the peak yet, there are only 800 companies registered in the market, paying taxes to the state over 200 billion baht

 a year.

The state may collect more taxes.

as a source of funding

In addition to tax

has also increased the country's GDP

I want the government to look at this angle.

If able to develop the capital market in our country to be bigger

will be a source of capital for companies that are new businesses

without having to struggle to find other sources of capital

“This measure will take us backwards.

and difficult to recover.”

There is a question that others can collect.

Why can't we keep

like the Hong Kong market that was picked up for comparison

because there is taxation in this way

But the Hong Kong market does not collect other taxes.

At the same time, the Hong Kong market is a developed market.

It is a market that does not reconcile investors.

As for us, we are in the development of the stock market.

When we do something strange, foreign investors don't come to invest.

moved to invest in other markets because of lower fees

Who is the real competitor of the Thai capital market?

to compare

We have to compete with Singapore.

which today does not collect sales tax on shares

We are competing with him, have to ask, what do we have to fight?

What the Singapore market lacks is liquidity, but we have. We are taking our selling point to others.

Singapore hopes for foreign liquidity to invest.

If half of the foreign investors used to invest in our home market move to

His liquidity will rise immediately.

Governments can use capital markets as a mechanism to build future infrastructure.

Estimates that the tax from the sale of shares over 16,000 million baht may be impossible.

and may lead to poor market liquidity

People don't want to trade.

It will make liquidity even more bad.

and make trading more difficult as well

"Mr. Paiboon"

concluded that collecting tax on sales of shares

It's not worth it.

The capital market is the main tool necessary for the country's economy to expand.

getting us out of the middle-income trap

It is something that will make us fight against an aging society.

The capital market is therefore very necessary to help the government to reach the destination it needs to go.

If today is still stubborn, this tax will be collected.

what the government would have considered very insignificant

In exchange for what will follow is the negative impact in the future.

If the capital market does not function fully

will make it difficult to solve structural problems in the future economy.

Thai Rath online news team reported

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