Inheritance tax rate slashed from 10 to 5 per cent: Sommai

Economy March 27, 2015 01:00

By The Nation

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The inheritance tax will now be 5 per cent, not the 10-per-cent level proposed in the inheritance tax bill.

Finance Minister Sommai Phasee said yesterday that the planned tax cut would follow the majority vote of the National Legislative Assembly’s special committee.

"Most committee members voted for a 5-per-cent tax. At this rate, according to the Revenue Department’s director-general, about Bt3 billion of revenue from this tax will be collected annually," he said.

The previous revenue target was Bt10 billion.

The NLA also raised the tax threshold on inheritances from Bt50 million in the original bill to Bt100 million, he said. Estates worth less than the threshold will be exempt from tax.

Sommai also said that, according to the joint committee on anti-corruption, three investment projects worth about Bt10 billion would be included in the Integrity Pact – Upper Case – to ensure transparency of the procurement process.

The three projects are the Bt7.4-billion machinery procurement of the Thailand Tobacco Monopoly, Bt1.3-billion X-ray machine procurement of the Customs Department and Bt1-billion investment of the Public Relations Department.

Five more projects are also planned for inclusion in the Integrity Pact.

Under the pact, all state and private units related to a procurement are required to sign the pact to ensure no bribery and information disclosure in all processes.

The two pilot projects are the pro-|curement of a NGV bus fleet by the |Bangkok Mass Transit Authority and the construction of the Mass Rapid Transit Authority of Thailand’s Blue Line electric rail route.

"There have been no reports of procurement irregularities for both pilot projects and there has been progress, reflecting the government’s serious intention to get rid of corruption in state agencies," said Sommai, who chairs the anti-graft committee

Based on the Integrity Pact, two to five observers holding no interest in a procurement deal will follow it and report on |its progress and transparency to the committee.