D
Dave The Dude
Guest
BoT ponders re-imposing tax collections on foreign capital influx
BANGKOK: -- The Bank of Thailand (BoT) is considering re-introducing imposing taxes on foreign capital inflows as an option in protecting the Thai currency, the baht, which has gained strength over the US dollar since the beginning of 2010, a senior BoT official said.
Wongwatoo Potirat, senior director of the BoT Financial Markets and Reserve Management Department, said the BoT formerly collected tax on foreign capital inflows in case they stayed in Thailand less than three months as the money was considered for speculative purposes rather than for actual investment.
Tax exemptions then were aimed at attracting foreign capital to the country, she said, adding that the measure could be re-introduced if the central bank found it necessary and believed it was unfair between foreign and Thai investors.
Ms Wongwatoo noted that the situation on foreign capital now has been changing rapidly and that the BoT closely monitors it regularly, but whether it would issue additional measures would depend on the situation.
The central bank is ready to implement measures it sees as necessary to contain heavy foreign capital influx if it is agreed by concerned agencies and the BoT, she said.
The Thai baht which has performed favourably against the greenback in the region since the beginning of this year was traded at Bt31.17-31.20 against the dollar late Friday.
Analysts expect that foreign capital will continue to flow into Asia due to higher returns on investment.
The current strengthening of the Thai baht has made the central bank concerned regarding small Thai exporters, especially those in the agricultural sector, or those using locally supplied raw materials on products made for exports, said Ms Wongwatoo.
She said a seminar will be held in the third week of October to provide knowledge to small exporters on foreign exchange and how to manage the baht.
BoT assistant governor Suchada Kirakul said there is a possibility that the baht would continue to move at this level or dip slightly in the future.
The BoT, said Mrs Suchada, is closely monitoring the movements of the baht against foreign currencies.
-- TNA 2010-09-05
BANGKOK: -- The Bank of Thailand (BoT) is considering re-introducing imposing taxes on foreign capital inflows as an option in protecting the Thai currency, the baht, which has gained strength over the US dollar since the beginning of 2010, a senior BoT official said.
Wongwatoo Potirat, senior director of the BoT Financial Markets and Reserve Management Department, said the BoT formerly collected tax on foreign capital inflows in case they stayed in Thailand less than three months as the money was considered for speculative purposes rather than for actual investment.
Tax exemptions then were aimed at attracting foreign capital to the country, she said, adding that the measure could be re-introduced if the central bank found it necessary and believed it was unfair between foreign and Thai investors.
Ms Wongwatoo noted that the situation on foreign capital now has been changing rapidly and that the BoT closely monitors it regularly, but whether it would issue additional measures would depend on the situation.
The central bank is ready to implement measures it sees as necessary to contain heavy foreign capital influx if it is agreed by concerned agencies and the BoT, she said.
The Thai baht which has performed favourably against the greenback in the region since the beginning of this year was traded at Bt31.17-31.20 against the dollar late Friday.
Analysts expect that foreign capital will continue to flow into Asia due to higher returns on investment.
The current strengthening of the Thai baht has made the central bank concerned regarding small Thai exporters, especially those in the agricultural sector, or those using locally supplied raw materials on products made for exports, said Ms Wongwatoo.
She said a seminar will be held in the third week of October to provide knowledge to small exporters on foreign exchange and how to manage the baht.
BoT assistant governor Suchada Kirakul said there is a possibility that the baht would continue to move at this level or dip slightly in the future.
The BoT, said Mrs Suchada, is closely monitoring the movements of the baht against foreign currencies.
-- TNA 2010-09-05