InfoQuest (August 14, 2020) -- The Federation of Thai Capital Market Organizations (FETCO) chairman Paiboon Nalinthrangkurn announced that the FETCO meeting was set to unveil a series of proposals to the Ministry of Finance related to increasing savings, extending Super Savings Fund and exempting taxes on dividends.
1. Separate tax-deductible contributions are recommended for the long-term savings.
FETCO has proposed a 10-year investment extension period for extra units in the Super Savings Fund (SSFX) to financial authorities. Mr Paiboon said the SSFX units could attract more investment if the lock-up period were reduced to seven years.
FETCO also plans to propose exempting taxes on dividends for more than one year for long-term equity investment, similar to China.
2. FETCO wants to partner with the government to draw in foreign investments through amending related laws to support investor relations, and promote startups and small and medium-sized enterprises to gain greater access to funding in the capital market.
3. FETCO will help push the National Pension Fund Act to become effective in order to encourage compulsory savings. Retirement Mutual Funds (RMFs) is designed as a retirement savings fund because it requires individual taxpayers to lock up their contributions until they retire.
"At present, there are less than 2 million investors in Thai stock market; the government shall take promotional measures to stimulate the growth of savings through tax adjustment and may cease the stimulation in case of 10 million investors."
Thailand's stock market was contract by 15.9 percent this year as foreign investors' dismal confidence in investing in Thailand and anxiety about the political situations there, Mr Paiboon added.
But the Thailand's stock market would still have good long-term prospects depending on economic fundamentals of governmental new economy team and the unexpected events affecting market sentiment.
Source: InfoQuest, by Pacharatorn Phoomkham/Sasithorn, translated by Xinhua Silk Road
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