Members of the Thai business community directed their ire at the recent spate of 16 tax reforms approved yesterday, deeming them largely inadequate. The reforms were enacted in order to help small and medium sized enterprises (SMEs) alleviate higher costs associated with the nationwide minimum wage law which went into effect on Jan. 1 of this year.
Chief among the reforms were measures moving the profit ceiling necessary for tax exemption from THB150,000 to THB300,000 per year. Another central measure, a reduction in the withholding tax from 3% to 2%, has since been withdrawn by the Finance Ministry warranting further consideration.
Representatives from both the Chamber of Commerce and the Federation of Thai Industries (FTI) criticized the limited extent of the tax reforms and requested the government do more to improve productivity and competitiveness for SMEs.
According to The Nation, Secretary-General of the Federation of Thai Industries Thanit Sorat estimated the new wage laws impose an average 10-15 percent increase in the overall cost of production for SMEs. Mr. Sanit expressed a preference for direct government financial support in place of tax relief.
As of yesterday, the FTI submitted a letter petitioning the office of PM Yingluck Shinawatra to do more on behalf of Thai businesses, particularly in the area of export competitiveness.
