After the Cabinet on November 29, the past approved the principle of collecting sales tax on shares. which will come into force in the middle of next year Many parties questioned and This action will trigger a case that will affect the liquidity of the Thai stock market. Provided that the global economy is about to go into recession
Today, Prachachat Wealth talks about investing and will talk to them “Mr. Tom-Paiboon Nalinthrangkun” CEO of TISCO Securities Co, Ltd and former Chairman of the Board of the Federation of Capital Market Institutions of Thailand
Q: Would you like me to help you analyze the taxation of the sale of stocks again?
After analyzing it for 3 years (laughs), as usual, I still disagree with it. I think it will have a significant impact on liquidity. as said before especially foreign investors who today trade around 40-50% every day
This group of investors will have trading costs. The content of this tax will more than double. which of course will make the value of his investment may be reduced He may reconsider.
and asked what the problem would be with less liquidity It affected everyone. When the liquidity decreases, investors are generally not as agile in buying it as before. and especially the business sector when raising money whether it’s an IPO What new shares will be issued? or to raise extra money It will affect everything. because the liquidity is reduced Launching new products in the stock market It may not be as easy as before.
Therefore, “liquidity” is the “heart of the stock market.” I think this is an important issue.
and especially in terms of timing The more I thought it was inappropriate. To be done during the year next year is the year when the global economy enters a serious slowdown. and the United States has a chance of recession Europe has a chance of recession interest is high inflation is high The war is not over yet. Covid is still irregular. It all gets worse.
And especially if we look at liquidity. As of November 28, 2022, they traded for only 38,000 million baht and did nothing. Liquidity is gone. and in studying these matters I believe they would do for the stock market, trading a hundred thousand million baht a day. last year Today, it is 3-4 billion baht left, which is worrying.
But of course it wouldn’t happen immediately. because apparently foreign investors are preparing Prepare to plan where to go next, what and how, so the next step will definitely affect the development of our capital market.
Q: Even if it collects 0.05% for the first year, it’s not positive, right?
No, people know they will keep it. Today he is a foreign investor who is a short-term trading program, who is actually the person who supplies him with a lot of liquidity. His trading cost was less than half the tax he would have collected, so he had already doubled, so whatever if the price went up that much. He had to rethink whether he would continue trading. or trade elsewhere
Q: What stock market tax address? which is more attractive to attract foreigners
Many people will ask this. But I think the main point is how much interest Thailand has to invest. I mean, today we might be lucky to get travel stories. It can still be profitable. But it is a matter of short term.
But I’m more concerned about the long term, in terms of development. If we publish a policy that is inconsistent with what investors are looking at It could have an impact. I don’t want it to be like that.
Q: Will the Federation of Thai Capital Market Businesses hold a new discussion?
It is not negotiable. I told him everything I said many years ago Now that he looks like he’s joined the Cabinet, he probably won’t be slowing down. The reason why today I have spoken several times, I have fallen into the groove, he already knows. But choose to do it, it doesn’t matter, but probably the tax collected will not be as much as he expected. because liquidity today has decreased a lot
Q: What is the momentum of the Thai stock market going forward?
It would be effective. That is, if there is a group of investors, there are various trading programs, if more than half disappear. Causing the Thai stock market to be only 3-4 billion baht left, in fact, it would be busy at all. It became a market that began to lack interesting liquidity. it will affect Because in the past, we were proud that the liquidity we traded was 80 billion baht a day, 100 billion baht a day. In the first place in ASEAN for 5 years, if it is reduced to 3-4 billion baht, it will be even more exhausting to persuade people to invest.
Q: Will it reduce incentives for companies to list? and lose the IPO championship?
It is possible, especially the IPO we want. Our technology companies are not very active yet. We still need to do things here and there. Like I said, it’s timing, not like that. we are currently developing We are in a position where we want to do many things, want to be a source of finance for new businesses, for small and medium businesses to give many things.
and no country Today, a good direction rises up to collect capital market taxes. Is to do good things when we are ready. I think it is worth listening to a view from the capital market side as well. That’s all.