Tax reforms a test of government’s political will

11 Sept 23:32 Key points summarised by AI

Finance Minister Pichai Chunhavachira initiated urgent tax reforms, including a potential VAT increase (from 7% towards 10%) and corporate tax reduction, to boost state revenue for social programs and infrastructure, aligning with global minimum tax standards.
Key business groups vehemently oppose a VAT hike, citing sluggish economic growth and high debt, advocating instead for widening the tax base to include unregistered businesses to increase government revenue.
Independent think tanks and the World Bank support comprehensive tax reforms, emphasizing a gradual VAT increase, broadening the personal income and wealth tax bases, and improving compliance to address Thailand's low tax revenue and significant "tax gap."
Amidst public concern, the Prime Minister and Finance Minister clarified that any VAT adjustment would be gradual, not reach 15%, and is part of a long-term study to ensure fairness and enhance national competitiveness, underscoring the political challenge of implementation.

Nationwide crackdown launched on illegal nominee shareholders and land holdings

Yesterday 15:20 Key points summarised by AI

Thailand's Prime Minister Anutin Charnvirakul initiated a nationwide crackdown on illegal Thai nominee shareholders in foreign-run businesses and land holdings to safeguard national interests.
The government will integrate efforts across all relevant agencies to target illicit foreign operations, forced sales of illegally acquired property, and high-risk land ownership schemes.
Key strategies include auditing suspect land and building holdings, establishing a long-term monitoring system, and cross-referencing data from various authorities to trace ultimate beneficial owners.
Prime Minister Anutin emphasized that no influential figures or corrupt officials are above the law, promising straightforward prosecution, asset seizures, and protection for enforcing officers.
Beyond land ownership, the integrated crackdown will also extend to tackle transnational crimes, including drug and human trafficking.