June 19, 2014 / 12:35 PM / in 3 years

UPDATE 1-Thai stock exchange to consider a capital gains tax - board member

(Adds comment from stock exchange chairman)

By Wirat Buranakanokthanasan

BANGKOK, June 19 (Reuters) - A member of the board of Thailand’s stock exchange said on Thursday that a capital gains tax would soon be considered for shares held for a short time, but the board’s chairman disagreed, saying the proposal was untimely.

The proposed tax would be discussed at a board meeting early next month and a study of taxation proposals undertaken, board member Kittipong Urapeepatanapong said.

“A study of taxation should be completed within three months,” Kittipong told reporters.

He said consideration would be given to taxing gains from sales of shares held for less than six months or a year, but he gave no details.

At present, investors in the Stock Exchange of Thailand are exempt from a capital gain tax.

But the board’s chairman, Satit Limpongpan, said any such tax would make the exchange less attractive to retail investors, who account for more than half of stock transactions.

“It’s not a good time to consider the issue,” he told Reuters by telephone.

Introducing a capital gains tax, he said, would create discrepancies with other markets in the region, such as Singapore and Malaysia, he said.

Rumours about the possible introduction of a capital gains tax helped push down the benchmark SET index 1.3 percent on Wednesday, brokers said.

The index rebounded 0.4 percent on Thursday. (Writing by Viparat Jantraprap; Editing by Richard Borsuk and Ron Popeski)

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