The Ministry of Finance, in collaboration with the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET), is preparing to propose adjustments to the Thai ESG criteria to the Cabinet within two weeks.
The proposal includes increasing the maximum tax deduction limit from 100,000 baht to 300,000 baht per year and reducing the holding period from eight years to five years. This incentive aims to encourage more individuals to invest in sustainable companies and contribute to Thailand’s transition to a greener economy.
The Ministry of Finance estimates that the proposed changes will stimulate investment in Thai ESG funds by approximately 30 billion baht. The number of stocks included in the Thai ESG program is expected to increase from 128 to 300.
However, the government is also expected to incur a tax revenue loss of around 13 billion baht due to the increased tax deductions. These measures will be retroactively effective from January 1, 2024.
In addition to the Thai ESG fund enhancements, the Securities and Exchange Commission (SEC), the Stock Exchange of Thailand (SET), and the Association of Thai Securities Companies (ASCO) are collaborating to implement measures to curb inappropriate trading practices. These measures will begin implementation in early next month, with ongoing monitoring and adjustments as needed.
The Ministry of Finance is also studying the success of the state-backed Vayupak Fund to explore potential replications and enhancements. Details are expected to be available within a month.
Future plans also aim to develop the capital market to align with the digital and green economy, including fundraising through digital assets and promoting carbon credit trading in a regulated market for transparency. (TNA)
