Thailand moves closer to introducing wealth tax with new asset tracking capabilities
BANGKOK, Jan 18 — Thailand is now closer to implementing a wealth tax, Finance Permanent Secretary Lavaron Sangsnit said today, citing recent developments that make it possible to track the assets of the country’s wealthiest individuals, even those held abroad.
Speaking to students at the National Defence College, Lavaron explained that the introduction of a wealth tax is no longer an unattainable goal, particularly in light of Thailand’s new membership in the international tax information exchange network, The Bangkok Post reported.
The network allows the Thai Revenue Department to access the income data of citizens living overseas, as well as receive reports from foreign authorities on income earned by Thais abroad.
“This means a wealth tax must be introduced. In the past, implementing such a tax was challenging because the very wealthy could manage their assets globally,” he was quoted as saying.
“Previously, taxation focused only on assets within Thailand, which were easier to track. But the wealthy can invest worldwide and we have never been able to track their assets held abroad.”
Thanks to this new international framework, income and assets held overseas are now visible, potentially enabling the taxation of previously untaxed wealth.
According to Lavaron, the shift in global tax trends – towards reducing income taxes and increasing taxes on consumption and wealth – has prompted a reevaluation of Thailand’s own tax structure.
“Is raising the VAT sufficient in terms of tax structure reform? The answer is no because a key objective of taxation is to reduce income inequality between high-income and low-income earners,” he was quoted as saying while underscoring the need for a wealth tax to address growing economic disparities.
He also highlighted that a well-balanced tax reform could lead to the reduction of income tax rates, which would serve as a means to encourage investment and attract skilled professionals to Thailand.
“Many countries have adopted mitigation strategies. When taxes are raised in one area, compensatory measures can support vulnerable groups, aiming to reduce the impact of consumption tax increases,” he was quoted as saying.
Simultaneously increasing consumption and wealth taxes, he added, could enhance the efficiency of tax collection.
Lavaron also addressed the evolving economic landscape, stressing that Thailand cannot operate in isolation as global tax rules continue to change.
“We must acknowledge the global tax rules have changed, and Thailand cannot operate in isolation. I believe well-balanced tax reform in the future is achievable,” he was quoted as saying.
The Finance Permanent Secretary’s remarks follow a proposal from Thailand’s Fiscal Policy Office to reform the country’s tax system, aimed at generating revenue, strengthening debt repayment capacity, and adapting to changes in economic structure and consumer behaviour.
