The Revenue Department has implicitly rejected proposals to offer listed companies a further cut in corporate income taxes to coax them to list on the Stock Exchange of Thailand.

It also nixed a proposal to increase the tax deduction on long-term fund investments.

"While the tax-related privilege was exercised, the exchange welcomed a large number of listed companies. The privileges thus proved to be good incentives. Still, there are other ways of promotion.

A new marketing approach is needed, because if we keep resorting to old ways, it'd be rather dull," said Satit Rangkasiri, director-general of the Revenue Department.

His comments followed reports that the Association of Listed Companies had asked the department to reduce corporate taxes from 30 per cent to 25 per cent for companies listed on the SET, and from 30 per cent to 20 per cent for companies listed on the Market for Alternative Investment.

Still, Satit said he was ready to consider the proposals, but personally he said the association should come up with new incentives to boost the number of listed companies.

Recently, the department allowed listed companies to deduct their investment from their taxable income by 125 per cent of the actual investment amount.

"This is a good strategy as it will also increase investments and benefit the entire economy. We're assessing the benefits of this policy," Satit said.

Meanwhile, he said the maximum individual tax deduction on investment profits gained from long-term funds (LTF) and retirement mutual funds (RMF) was unlikely to be increased from the current Bt300,000.

Fund companies proposed that the limit should be lifted to Bt500,000 per annum.

"There are 700,000 individual taxpayers, but less than 50,000 have bought these unit trusts. Fund companies should first encourage more taxpayers to buy the unit trusts before asking for an expansion to the limit," he said.

Such an expansion would also only benefit a few people, according to Satit.

Siriporn Chanjindamanee

The Nation