Gold traders oppose tax on transactions

Levy could damage status as hub

- NAREERAT WIRIYAPONG WICHIT CHANTANUSORNSIRI

Gold traders voiced opposition to Thai authorities' discussion of imposing a tax on physical gold and online transactions, saying such efforts to rein in baht appreciation would cause the country to lose its status as a gold trading hub.

Jitti Tangsithpakdi, president of the Gold Traders Association (GTA), said it remains unclear whether the Bank of Thailand and the Finance Ministry would impose a tax on physical gold or online gold trade.

"We don't agree with any kind of tax as it could send a signal that the Thai gold industry is stepping backward, jeopardising Thailand's role as a gold trading hub," Mr Jitti told the Bangkok Post.

"Countries such as Malaysia are abolishing taxes on gold to compete with Thailand as a regional hub. We should not do anything that undermines efforts to position Thailand as a regional hub for gold and jewellery in Southeast Asia."

The central bank and Finance Ministry held a meeting on Monday with more than 10 gold traders to discuss ways to ease pressure on the baht caused by gold transactions.

Earnings from gold exports helped fuel the baht's rally to a four-year high last week, with its appreciation of more than 7% against the dollar this year prompting calls for stronger central bank intervention to protect exports and tourism.