Thailand passes first inheritance tax to boost economy

Thai government aims to collect three billion baht annually from 'the rich'

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

Thailand's military junta government has brought a new tax, the country's first inheritance tax, to boost the country’s economy that is badly affected by last year's political unrest.

The inheritance tax is part of a broaden tax reform that the junta government hopes to generate more revenue and improve redistribution. The bill requires 5 percent tax for a threshold of 100 million baht ($3 million) from inheritors.

The government expects a 3 billion baht revenue from the new tax, which will be effective 180 days after it is announced in the Royal Gazette. The bill does not include oversea assets.

Thailand is the six Asean country to collect inheritance tax after the Philippines, Vietnam, Japan, South Korea and Taiwan levy such a tax.

On May 22, after more than seven months of political protests against the democratically elected government, Thailand's army chief, General Prayuth Chan-ocha, declared the military had seized power in a coup and later declared himself as prime minister.

Thailand’s military government recently delayed the general election, which was planned to take place in August 2016, for more than six months.

TRTWorld and agencies