The government of Thailand had announced its plan of imposing the crypto tax. However, members from both sides of the house are warning the government with this legislation that can cause disruptions for the industry.
Recently, the finance ministry of Bangkok has introduced a 15% levy on profits from crypto investments. Representatives from parties across the political spectrum have shared their disagreements with the plan.
If the proposal passes into law, it’ll affect cryptocurrency miners, dealers as well as investors. Moreover, traders will have to keep a log of all their transactions to pay the taxes accordingly.
As of now, the revenue department is finalizing the details of the tax.
Former investment banker, finance minister, and incumbent leader of Kla Party, Korn Chatikavanij stated his disappointment on social media, saying:
“I disagree with the Revenue Department on collecting this tax until there is further clarification on issues of concern.“
He also took a dig on VAT, elaborating:
“The Revenue Department is collecting VAT like crypto is a product. Therefore, there will be a double VAT payment on cryptocurrency transactions where you have to pay the VAT when selling the product and paying another VAT from selling crypto in baht.”
Finally, Korn said that if the draft legislation passes, crypto sellers will have to pay VAT without issuing a receipt. This is because most crypto platforms don’t identify crypto buyers/sellers.
This is also a reason why countries such as Singapore, Australia, and the EU are amending laws to exempt crypto from VAT.
Besides Kla Party, Pheu Thai Party and Thai Sang Thai have objected to the Thai government’s plan of crypto tax.