The Federation of Thai Capital Market Organizations (Fetco) has urged the Finance Ministry to abandon a proposal to collect a transaction tax from share trades, claiming the stock market still needs tax incentives to support long-term investment.
Fetco on Thursday submitted an open letter to the ministry to oppose its plan to impose a 0.1% tax on securities trades.
The federation’s chairman Paiboon Nalintrangkurn said the tax will severely affect the market’s liquidity by discouraging people from investing.
He said overseas studies have shown that such a tax collection will mean people need to spend 2-3 more years to save enough money for retirement.
Moreover, the increased tax burden will raise costs for market makers, typically large brokers that boost market liquidity by issuing or developing new products, especially derivative warrants and single stock…
