Government House, Cabinet approves additional tax deduction of 300,000 baht/person, holding for 5 years, supporting the purchase of Thailand ESG Fund investment units, long-term savings through the capital market. Mrs. Ratklao Inwong Suwannakiri, Deputy Government Spokesperson, revealed that the Cabinet meeting approved the principle of the draft ministerial regulation on granting benefits under tax measures to promote investment for the sustainability of Thailand in the Thailand ESG Fund (TESG) by expanding the personal income tax deduction limit for purchasing investment units in the Thailand ESG Fund from 100,000 baht per tax year to 300,000 baht per tax year, not exceeding 30 percent of assessable income, reducing the holding period of investment units to no less than 5 years (from the original 8 years) for investment units purchased from January 1, 2024 to December 31, 2026, and stipulating that any money or benefits received from selling investment units back to TESG will not be included in the calcul ation of personal income tax (the investment units must have been held for no less than 5 years from the date of purchase). The investment limit of Thai ESG will not be included with other retirement savings funds, such as LTFs and retirement mutual funds. Provident Fund, Government Pension Fund, Private School Teachers' Welfare Fund and National Savings Fund, and pension insurance premiums currently have a combined tax deduction ceiling of no more than 500,000 baht. In the case of purchasing TESG funds between January 1, 2024 and the day before the Ministerial Regulation comes into effect, investors are entitled to a deduction of 30 percent of the assessable income, not exceeding 300,000 baht, and are entitled to a reduction in the holding period of the units to no less than 5 years from the date of purchase. (In the case of purchasing TESG funds before January 1, 2024 and purchasing TESG funds from January 1, 2027 onwards, fund buyers are entitled to a deduction of 30 percent of the assessable income, not exceeding 100,000 baht, when holding units for no less than 8 years from the date of purchase.) The Ministry of Finance admitted that it lost 13-14 billion baht in tax revenue per year. It is estimated that the loss of revenue in the first year will be around 3 billion baht and in the following years, 10 billion baht per year. It hopes to increase investment in TESG mutual funds. Consideration of the environment, society, and corporate governance will result in increased long-term investment in the Thai capital market, resulting in increased savings and long-term investment. The relevant agencies recommend that the Ministry of Finance monitor and evaluate the results, increase efficiency in tax collection to compensate for the loss of revenue, and prevent future fiscal risks. Source: Thai News Agency