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Friday, March 29, 2024

Tax may see SET trading value sink

Trading value on the Stock Exchange of Thailand (SET) could drop 40% if a capital gains tax on share sales is imposed, with the higher cost driving investors away from the market, says Paiboon Nalinthrangkurn, chairman of the Federation of Thai Capital Market Organizations (Fetco).

Mr Paiboon said he understands the government need to secure more tax revenue, but taxing share sales will exacerbate the situation by reducing the liquidity of businesses in all sectors.

The Thai stock market is the country’s main source of funding for the business sector and accelerating economic growth, which leads to higher tax revenues, he said.

A total of 800 SET-listed firms now contribute 30% of the corporate income tax collected by the state each year. Imposing the tax on share sales will make fundraising more difficult, shrink liquidity in…

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