Cautious approval for new savings plan

Analysts generally view the proposed Thailand Individual Savings Account (TISA) as a constructive long-term policy tool to promote savings and investment, particularly as the country is now an ageing society.

- NUNTAWUN POLKUAMDEE

However, market participants remain cautious about its short-term implications, noting that the scheme may not offer sufficiently strong incentives for high-income taxpayers.

According to the National Economic and Social Development Council (NESDC), Thailand became an ageing society in 2024, with 14 million people over 60, roughly 20% of the population.

By 2033, the elderly population is projected to reach 28%, moving Thailand into the ranks of a “super-aged” society.

On Monday, the economic cabinet approved the TISA scheme, which will allow combined tax deductions of up to 800,000 baht and is scheduled to take effect on July 1, 2026. The initiative aims to encourage long-term savings and investment while supporting liquidity in the domestic capital market over the coming years.

Under preliminary guidelines, taxpayers earning less than 1.5 million baht a year would be eligible for tax deductions of up to 1.3 times their investment amount, while those earning more than 1.5 million baht annually would receive a lower deduction cap of 0.7 times.