Chulaphan” Deputy Minister of Finance confirms “negative income tax” is included in the policy to accelerate the study to solve social problems. He emphasized that it is not to replace the existing welfare, but it is an idea that wants to create a safety net for the people so that no one will fall into poverty.

Mr. Chulaphan Amornvivat, Deputy Minister of Finance, explained the policy of studying a new tax system or negative income tax that this idea is an idea that has been included in the government’s policy to allow for detailed study and is an idea to answer various problems such as the labor issue, which currently has more than 50% outside the system, making it impossible for us to provide tangible assistance.

Meanwhile, there are about 4 million low-income people below the poverty line and about 5 million people are in the so-called near-poverty point. These groups are quite vulnerable and the government has always thought of finding ways to help.

For the problem of the tax base system in Thailand,
there are relatively few people entering the tax base system. Only 10 million people file income tax forms, but only about 3-4 million people actually pay taxes. This problem is a problem that is interconnected.

The above concept is an example from abroad that wants to create a social safety net so that no one can fall into the frame of hardship and poverty. There will be criteria to measure the appropriate poverty line. If all citizens can file taxes, when anyone exceeds this line, they will pay taxes at the appropriate rate.

While those who fall below the specified line, the tax mechanism can be a negative tax that can be returned to compensate and subsidize them so that they can open their eyes and fight, including making people dare to think about investing.

Mr. Chulaphan pointed out that this idea will be one of the motivations that will make people always know that behind them is the government that will support them to stand up again no matter how many times they fall, and will make people in the co
untry change their thinking, increase their motivation to work and drive the economy together. The Ministry of Finance will be the main organizer in studying the details to be complete.

Mr. Chulaphan addressed the question of whether this idea would be a compensation or replacement for existing welfare, saying that each type of welfare has different calculation principles, which are different issues because they are different objectives. But of course, with the limited government money, we must continue to manage it appropriately.

However, in the next 1-2 years, the Ministry of Finance will accelerate the study of this idea so that in the end, all Thai people will have a reliable safety net that will support them in every situation.

Source: Thai News Agency