Call for swift reform of tax incentives

Tax benefits for salaried workers will gradually decline from 2027 if long-term savings and investment measures are not improved, says caretaker finance minister Ekniti Nitithanprapas.

- WICHIT CHANTANUSORNSIRI

A rapid reform of tax incentives is needed as tax benefits for salaried workers are expected to gradually decline from 2027.

Current tax incentives allow deductions for savings and investment, including purchases of annuity life insurance policies, and contributions to retirement mutual funds (RMFs), provident funds (PVDs), the Government Pension Fund (GPF), the Private School Teachers' Welfare Fund, and the National Savings Fund (NSF) — up to a maximum of 500,000 baht.

In addition, investment in Thai ESG funds allows deductions of up to 30% of assessable income, capped at 300,000 baht. The combined maximum allowed to be claimed as a tax deduction is 800,000 baht.