Nation Thailand
Gold traders warn VAT plan may hurt savers amid BoT scrutiny
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Thailand’s gold industry is seeking to defend its role in the economy as state agencies and the Bank of Thailand increase scrutiny of gold trading amid concerns over baht volatility.
Key facts
- Thanapisal Koohapremkit, executive chairman of GCAP Co Ltd, said the gold business was now being closely watched by the government and the central bank as higher global gold prices and heavier trading volumes have increased the need for
- Gold traders are particularly concerned about proposals to impose 7% value-added tax on gold investment, saying the measure could increase costs for both businesses and the public.
- On the proposal to impose 7% VAT on gold investment, Jitti said he disagreed with the idea at this stage.
- In a related development, 14 major gold traders agreed in principle with the Bank of Thailand to develop a US-dollar-denominated trading system within six months, with the aim of reducing pressure on the baht from large gold transactions.
Summary
Thanapisal Koohapremkit, executive chairman of GCAP Co Ltd, said the gold business was now being closely watched by the government and the central bank as higher global gold prices and heavier trading volumes have increased the need for traders to use US dollars to manage exchange-rate risks and imports.
That activity, he said, has led some observers to blame gold traders for adding pressure to the baht. However, he argued that such a view oversimplifies the issue.