Thailand’s Tax on Stock Transactions Affects Trading Volume, Says Exchange Chief
BANGKOK, Dec. 18 (Reuters): The volume of stock transactions in Thailand will be impacted if the government introduces a tax on securities transactions on the Stock Exchange of Thailand, the exchange chairman said
Pakorn Peetathawatchai was speaking at a press conference after media reported that from 2022 the government planned to impose a 0.1% tax on transactions in shares by entities with the volume of monthly transactions exceed one million baht ($ 29,976).
The plan had previously been reported by Reuters (Story on https://www.reuters.com/world/asia-pacific/exclusive-thailand-weighs-new-transaction-tax-securities-trades-sources-2021-07-05 ).
“It is a policy of the government that sees the need to collect such a tax, which has been removed long ago, and it must use tax money to stimulate the economy,” Pakorn said.
If the tax is imposed, some investors will be affected, especially those involved in high-frequency trading, which accounts for 20% to 30% of a current daily turnover of around 90 billion baht (2.7 billion baht). dollars), he added.
âWe have to wait to see and how we have to adapt,â he said.
The tax was like a Tobin tax on financial transactions, similar to those in India and Taiwan.
Finance Minister Arkhom Termpittayapaisith declined to comment on the tax at the request of reporters on Friday.
The main stock index was down about 0.4% by early afternoon. – Reuters