The Thai authorities should impose taxation on crypto gains only if it promotes the local trade industry, Thavaramara opined.
Tipsuda Thavaramara – former Deputy Secretary-General of Thailand’s Securities and Exchange Commission (SEC) – disagreed with the government’s intentions to impose a 15% capital gains tax on cryptocurrency profits. She believes such legislation is unpractical, unfair, and not beneficial for the trade sector.
The Bill Lacks Clarity
Earlier this month, the Thai authorities presented plans to slam local cryptocurrency investors and miners with a 15% capital gains tax. According to the legislation, digital asset exchanges would be exempt from the potential regulations. Nonetheless, the lawmakers did not elaborate, making some individuals doubt the use-cases.
One of them is Tipsuda Thavaramara – a former top executive at Thailand’s SEC. In her view, the possible crypto taxation lacks clarity and is not going to promote trade:
“Withholding tax also affects transactions as stores that accept cryptocurrencies must collect capital gains tax from customers.”
She went further stating that the Revenue Department’s decision is “unfair and unpractical” as crypto exchange operators do not pay investment returns to users:
“Whether policies focus on the promotion of trade industry or not, the Revenue Department should collect taxes fairly under clear rules and practices.”
Thavaramara noted that countries like Singapore, Australia, and some European nations do not treat cryptocurrencies as a product and have removed the value-added tax (VAT) on trading. She urged Thailand’s authorities to follow that path.
Thailand’s Crypto Plans for 2022
At the end of 2021, the Bank of Thailand (BoT) unveiled plans to implement strict rules on the cryptocurrency industry in 2022 as the interest in the asset class keeps increasing.
The exact rules, which the BoT intends to propose are yet unknown. Still, the bank’s Governor – Mr. Suthiwartnarueput – said bitcoin and the alternative coins have the potential to prosper in the monetary system. Like many others, though, he warned that the enhanced volatility of the asset class remains an issue.
Prior to this, the central bank of Thailand urged local financial institutions to stay away from cryptocurrencies:
“We don’t want banks to be directly involved in digital asset trading because banks are responsible for customer deposits and the public, and there is a risk.”
The BoT was also concerned that the broad employment of digital assets could impact the central bank’s ability to monitor the national economy.