Thailand Considers Negative Income Tax to Enhance Welfare System
Thailand may implement a negative income tax system within the next three years to improve its welfare and financial aid to low-income citizens. Proposed by Deputy Finance Minister Julapun Amornvivat, this system is intended to replace current state welfare policies, potentially including the elderly allowance. The government seeks to bring all individuals into the tax system under this plan, possibly requiring a change in the Revenue Act.
Deputy Finance Minister Julapun Amornvivat announced on Tuesday that Thailand's government is exploring the implementation of a negative income tax (NIT) system within the next one to three years.
This system aims to improve the welfare system by providing financial support to low-income citizens and may replace current state welfare frameworks, including the monthly allowance for the elderly.
The NIT concept was initially studied by the Fiscal Policy Office (FPO) and further discussions have been held by the Revenue Department.
Julapun stated that previous studies centered on compensating taxpayers, but the focus has now shifted toward enhancing state welfare.
The proposed NIT system would encompass all individuals in the tax system by setting an income threshold below which citizens would receive financial assistance.
Amendments to the Revenue Act might be necessary to include everyone, as current requirements mandate tax submissions only for those earning over 120,000 baht annually.
If effective, the NIT could replace the welfare-card system and better address long-term financial constraints in providing for Thailand's aging population.
This system aims to improve the welfare system by providing financial support to low-income citizens and may replace current state welfare frameworks, including the monthly allowance for the elderly.
The NIT concept was initially studied by the Fiscal Policy Office (FPO) and further discussions have been held by the Revenue Department.
Julapun stated that previous studies centered on compensating taxpayers, but the focus has now shifted toward enhancing state welfare.
The proposed NIT system would encompass all individuals in the tax system by setting an income threshold below which citizens would receive financial assistance.
Amendments to the Revenue Act might be necessary to include everyone, as current requirements mandate tax submissions only for those earning over 120,000 baht annually.
If effective, the NIT could replace the welfare-card system and better address long-term financial constraints in providing for Thailand's aging population.
