Bangkok: The Senate recently hosted a seminar titled "Thai Taxation," focusing on restructuring the country's tax system to ensure the future stability of the Thai economy without resorting to tax hikes. The seminar highlighted that adopting the proposed reforms could generate an additional 300,000-350,000 baht annually through changes in the system's primary characteristics.
According to Thai News Agency, Ms. Chayanun Tiyatrakarnchai, Secretary of the Committee and Chair of the Subcommittee on Finance, pointed out the inefficiencies in the current system, where only 12 million out of 40 million workers file personal income tax returns, with just 4 million actually paying taxes. Additionally, income from assets, rentals, and various businesses often remains untaxed. She highlighted that out of 900,000 registered corporations, only 600,000 file taxes, and merely about 100,000 contribute tax revenues. Ms. Chayanun emphasized that if the Committee on Finance's recommendations are implemented, without increasing tax rates, the government could collect an extra 300-350 billion baht annually.
Senator Kamphol Supapang, Chairman of the Senate Committee on Economics, Finance, and Fiscal Affairs, stated that the current tax structure is inadequate for addressing the challenges of the modern economy. He noted the country's insufficient government revenue, rising citizen burden, fiscal deficits, increasing public debt, and the demands of an aging society and digital economy. The Senate's proposal advocates restructuring the tax system with a focus on fairness, efficiency, and alignment with the modern economy. This includes expanding the income base to include dividends and large capital, utilizing AI for efficient tax collection, and preparing for a Global Minimum Tax.
Mr. Kamphon further explained that taxes should be viewed as tools for national development rather than merely revenue sources. He warned that without immediate reform, Thailand might face two undesirable options: raising taxes during a crisis or compromising on public service quality. The forum's outcomes will be compiled into policy recommendations for submission to relevant agencies.
Mr. Pisit Lee-artham, a subcommittee member, expressed concern over the lack of political focus on tax reform during the recent election campaigns. He noted that Thailand's VAT rate is significantly lower than in Europe and suggested potential revenue increases from minor tax rate adjustments. He questioned the new government's resolve to tackle tax issues and criticized extravagant spending by some political bodies, emphasizing the importance of efficient tax usage and addressing corruption.