According to Anucha Burapachaisri, a government spokesman for Thailand, institutional investors in the nation will be liable to the transaction tax, with the exception of pension funds and market makers.
More than 30 years ago, Thailand stopped collecting the tax in order to encourage stock trading.
The new legislation, which was passed by the Thai cabinet last week, will apply a 0.05% tax rate to securities transactions on the Stock Exchange of Thailand in 2023 and a 0.1% tax rate in 2024. After being published in the Royal Thai Government Gazette for 90 days, the regulation will go into effect.
The tax is expected to contribute to the Thai government’s budget revenue by about 8 billion THB (230 million USD) in the first year of implementation and could double to 16 billion THB in the following years.
