Bangkok, Thailand – Finance Minister Pichai Chunhavajira has called for reforms to Thailand’s tax system, stating that the country’s personal and corporate income tax rates are higher than international standards. Speaking at the ACMA Business Forum 2024 held at InterContinenal Hotel, Pichai stressed the need to lower these rates to align with global levels and discussed value-added tax (VAT), suggesting it should be applied equally but could also be used to support low-income individuals.
Pichai also addressed the issue of debt restructuring, particularly for home and car loans. He noted that while financial institutions are strong, further defaults could weaken them. Resolving these debts, he said, would benefit both banks and consumers by reducing costs and allowing financial institutions to remain stable.
In addition, Pichai pointed to Thailand’s slower economic growth in recent years, with an average growth rate of 1.9%, excluding the pandemic years. He attributed this to a decline in the investment-to-GDP ratio, which has dropped from 40-50% in the 1980s to around 19-20% today. He warned that without action, the country’s economic potential could continue to decrease.
On the stock market, Pichai revealed recent positive trends, which he attributed to confidence in the newly established government and its clear policies. Adjustments to investment rules and the promotion of new funds have also contributed to improved market conditions alongside a downward trend in interest rates. (NNT)
