Bangkok: The Vice Chairman of the Committee on Finance and Fiscal Affairs has proposed a comprehensive overhaul of Thailand's tax system, highlighting the urgent need for fiscal reform to enhance the quality of life for citizens and avert a potential economic downturn.
According to Thai News Agency, Mr. Anusorn Thammajai, who serves as the Second Vice Chairman of the Committee on Finance, Fiscal Affairs, Financial Institutions, and Financial Markets, announced a forthcoming seminar to discuss fiscal reform strategies. Set for August 29, 2026, the seminar titled "Fiscal Reform for the Quality of Life of Citizens" aims to foster discussions on policy perspectives and legislative mechanisms needed to revamp the fiscal system. The focus will be on managing the national budget and developing transparent fiscal legislation to promote social welfare and reduce inequality.
Mr. Anusorn emphasized the importance of leveraging public tax funds to uplift citizens' quality of life. He argued for infrastructure investments that not only improve living standards but also bolster economic development and competitiveness. He stressed that national projects should be free from conflicts of interest and should align with the country's long-term vision and genuine needs. His vision for fiscal management prioritizes enhancing public health, education, workforce skills, environmental quality, and a transition to clean energy. He proposed tax credit adjustments to ensure fairer benefits for middle and low-income earners, thereby minimizing unnecessary revenue losses for the government.
The Thai economy is currently at risk of a technical recession, with Q3 GDP potentially continuing the contraction trend from Q2, which recorded a negative growth of 0.2%, exacerbated by the energy crisis and Middle Eastern conflicts. Consumption growth decelerated from 3.3% in Q1 to 1.9% in Q2, alongside declines in the service sector, tourism, and government investment. The consumer confidence index has also decreased. To counter these challenges, the government is urged to expedite investments that stimulate employment and reduce living costs. This includes restructuring the energy sector towards renewable sources and securing electricity and water resources to support long-term investments. Meanwhile, SMEs and the grassroots economy face liquidity issues, with production and sales slowing, risking business closures. Therefore, a swift economic restructuring is deemed necessary to improve competitiveness and ensure sustainable growth for Thailand.