Thailand weighing tax on gold trading as baht rally threatens exports, tourism

The Thai authorities are considering a tax on physical gold trading to slow a rally in the nation’s currency that has threatened exports and tourism.

- 

The baht fell the most in six weeks.

The Bank of Thailand (BOT) and the Finance Ministry are discussing ways to tax gold bought and sold through various online channels and settled in baht, according to people familiar with the matter. Any such levy may exempt gold traded in US dollars, on futures exchanges or purchases made from bullion shops, they said.

With the tax, the authorities aim to reduce exports of gold and make it more expensive for Thais to own the precious metal, the sources said, adding that US dollar inflows tied to bullion shipments were among the factors strengthening the baht.

The baht dropped 0.5 per cent to 31.88 per US dollar, the most since July 31.