Move Forward's tax policies could affect Thailand's financial status: ex-Energy Minister

He made the remark after the Move Forward deputy leader and head of its economic team, Sirikanya Tansakun, unveiled the party's policies on wealth tax, capital gains tax and the corporate tax hike.

Pichai, who is also deputy chairman of Pheu Thai Party's strategic and political committee, said it is a good idea to collect more tax as Thailand's taxation is low compared to gross domestic product.

However, given the current conditions in the country, Move Forward must look at the appropriate timing for raising taxes.

On capital gains tax, he warned that such a policy was already causing uncertainty among investors as the Thai capital market was not sufficiently well developed.

He added that capital gains tax is mostly applied in developed nations and that its application here could damage the country’s financial status by triggering an outflow of funds, especially to the US, although for now, investors preferred to benefit from the higher returns offered by Thailand.

On raising corporate tax to 23%, he said the government led by former Prime Minister Yingluck Shinawatra had reduced corporate tax from 30% to 23% and 20%, respectively, to attract foreign investment, noting that Hong Kong and Singapore have lower rates of 16-17%.

Apart from attracting investors, corporate tax reduction also enabled the government to collect more tax, he said.

He advised Move Forward to consider whether a corporate tax hike could trigger delays in investment, pointing out that increased electricity costs and rises in the minimum wage and tax could affect foreign investors' decision to invest in Thailand.

If the economy improves and more investors come to Thailand, the government will be able to generate more tax revenue, he said, quoting former PM Thaksin Shinawatra's remark "Less is More".

On wealth tax at 0.5% on people who have assets worth more than 300 million baht, he said this could cause a backing off from fundraising in the capital market. “Personally, I think collecting tax from wealthy people to reduce inequality is right, but it should be done carefully,” he said.

He added that people who have assets worth more than 500 million baht should be subject to wealth tax instead of those who have assets worth more than 300 million baht.

He expressed concern that those who inherited land would be subject to wealth tax and would have to sell the land to pay the tax.

Finally, he was full of praise for Sirikanya, saying that would like to see her become Thailand's first female finance minister.