Government will tackle income gap
The new government wants to reduce income disparities by introducing a property tax and inheritance tax. That should be achieved within a year, Prime Minister Prayuth Chan-ocha said yesterday in parliament, where he made the government statement.
Bangkok Post devotes the whole front page to it and highlights the tax reform first. In addition to the two new taxes, Prayuth also announced that some grounds for exemption will expire. Because only rich people or companies benefit from that, so that the government again misses out on income. The government wants to submit the proposed changes to the NLA (emergency parliament) as soon as possible.
The newspaper questions the tax reforms. She points out that previous governments have struggled with the introduction of an OGB and inheritance tax. 'It remains to be seen whether the military authority will succeed in this.' But for the NCPO (junta), tax reforms are a priority, provided they do not put a heavier burden on low-income groups.
From his 2-hour speech, the newspaper highlights some key points, such as the violence in the South, education, the dredging of waterways, water transport and the poor treatment of the disabled and underprivileged by the Social Welfare Department.
Also many nice words. I will randomly name a few.
- Both at home and abroad, people have high expectations of us. We're under a lot of pressure. There are challenges and opportunities.
- We hope that the NLA and the National Reform Commission (NRC) are checking us. Compliment us when we do something right.
- Divisiveness can come to an end through comprehensive reforms of the NRC. [The NRC has yet to be formed. This body of 250 members will make reform proposals in eleven areas.]
In an interview ahead of his statement, Prayuth said the government is aware of the tourism industry's concerns about martial law. "We're looking at what we can do about it. We must help each other by warning those who do not stop their activities. If it continues like this, the conflict will not go away. Then it can escalate.'
(Source: Bangkok Post, Sept. 13, 2014)
When I read this , my day could not be broken anymore .
Hope for your General Prayuth it will work .
When I see what the rich , with all their Rais in land pay every year in property taxes is definitely a NIKNOJ .
I also welcome some form of inheritance tax.
I also recognize them in my immediate surroundings , and hoard a lot of money and goods and land . But not having to pay a penny in taxes, and paying their employees less than the legal minimum wage.
Last year I ( my spouse ) was tapped on my fingers by someone like that .
Why do you pay those old people who worked for me in the garden 300 baht a day , that is way too much .
Fortunately he did not know that besides the 300 bath and free food , I also gave a tip at the end of the week .
And also around New Year my spouse give something extra in money.
How do they call such people again ( the writer Charles Dickens ) Scrooge .
A lot of Scrooges around here , trust me .
Jan Beute.
If you use the instrument of taxation to tackle income disparities, you will only get results if the tax burden reaches everyone in the country. Then you can level with load as an instrument.
But now take a minimum-wage couple if they already file a tax return. He and she both have 250 b/d (province dependent as we all know) on 5 days a week and come to an income of 65.000 baht pp. The exemption per person is 30.000 baht and the deduction for acquisition costs is 40% with a maximum of 60.000 baht and after that there is a 'zero bracket' of 150.000 baht. No tax instrument helps those people!
Entrepreneurs such as in eateries on the street, the cargo bikes behind a moped with a container of coal and bananas or satay on it, the mender, the man with a cargo bike who sells brooms and the like, the collector of what one finds in rubbish heaps, those people still have less and really don't fill in a 'blue letter'.
Then come up with a basic income as assistance, with a better basic pension than the 600-700-800 baht per month for poor old people, with a very low entry rate - zero if necessary - for the poor in the SSO pension system and chase the highest tax bracket of 35 percent, which is only reached at a taxable income of 4 million baht (after exemptions and deductions), raised to finance the contribution to the poorest.
But a levy on real estate as proposed, and an inheritance tax if you don't have a gift tax is only for filling the treasury. The poorest do not benefit from this. Oh, and while you're thinking about the poorest, take off the table that unfortunate proposal to ask for a personal contribution for the national health care.
What I'm reading now is just sweet talk.
I don't think there is anything wrong with a wealth tax on real estate.
If you want to distribute money, you will have to get it from the people who have it.
These are undoubtedly the people who also have huge pieces of Thailand as private property.
By the way, I once read that in Thailand only a few thousand people are in the highest rate scale. (As a few years ago)
Then there is probably something wrong with the taxation.
Increasing that 35% will therefore not help if the number of people who should pay this does not increase significantly.
The expats will probably not be forgotten during a tax review.
This can be done in 1 go with a real estate tax.