Thai government mulls on reducing personal income tax

BANGKOK, November 23 (TNA) - The Thai government is considering to reduce personal income tax in an attempt to spur foreign investment and to stimulate public spending in order to boost the national economic growth. Speaking during the weekly TV and radio programme of Thai Prime Minister and Defence Minister Yingluck Shinawatra on Saturday (Nov 23) morning, Deputy Prime Minister and Finance Minister Kittirat Na-Ranong told the public of the plan, under which the new highest rate of personal income tax collection, if implemented, will be cut to 35 per cent, from 37 per cent currently. Kittirat reiterated that the government has no plan for the time being to increase the value-added tax (VAT), which is collected at 7 per cent, to compensate for the expected lost in revenue from the reduction in personal income tax although the plan will cause the government to lose about 27 billion baht in revenue annually. Deputy Finance Minister Benja Louichareon said during the same programme that the new rate will be equal to personal income tax being collected in Vietnam, acknowledging, however, that the 35 per cent of personal tax collection remains higher than the rest of fellow member countries of the Association of Southeast Asian Nations (ASEAN). Benja noted that the plan to reduce personal income tax will be the first time in more than two decades in Thailand and the government may further cut the tax in the future. (TNA)