Thailand’s revenue agency said earlier this month that revenues from crypto trading and mining will be subject to a 15% capital gains tax.
On January 20, the government is anticipated to clarify details and clear up some of the misunderstandings that have arisen among local crypto firms.
A growing opposition
While most people appreciate clarity and controls for the business, there has been growing opposition to the new tax, which some lawmakers believe would harm the country.
Thailand’s military-backed administration is facing serious economic problems as a result of a nearly two-year-long lockdown that has crippled thousands of small enterprises, many of which rely on tourism.
Imposing extra taxes is one way for it to recoup some of the costs incurred as a result of the stimulus packages. In April, a new tourist tax is set to go into effect.
‘A new source of income for the younger population’
One politician who opposes the new crypto tax is Korn Chatikavanij, the head of the Kla Party. According to local media, he warned that all profitable transactions would be subject to a 15% tax, and that determining income would become a difficult task.
“As crypto is a product, the Revenue Department collects VAT,” he explained, before adding:
“As a result, there will be a second VAT payment on cryptocurrency transactions, where you must pay VAT when selling the commodity and another VAT when selling crypto in baht.”
Other political parties have expressed their opposition, with the registrar of the opposition Pheu Thai Party, Jakkapong Sangmanee, claiming that because crypto traders have already paid personal income taxes, an additional tax will hurt retail investors while benefiting institutional investors, resulting in greater inequality.
According to Credit Suisse, Thailand has one of the world’s greatest wealth disparities.
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