ส.อ.ท. ชี้เป้ารัฐ เร่งปรับโครงสร้างภาษีนำเข้าFTI Urges Government to Accelerate Import Tax Restructuring

Mom Luang Peakthong Thongyai, Vice Chairman of the Federation of Thai Industries (FTI), revealed the results of the FTI CEO Poll No. 43 conducted in January 2025 under the topic "Views on Thai Tax Reform Policies." The majority of FTI executives agree that the government should prioritize restructuring import taxes to maintain the competitiveness of domestic producers and prepare for the direct and indirect impacts of the anticipated intensification of trade wars. Meanwhile, there is majority opposition to adjusting the Value Added Tax (VAT) at this time. 

According to the survey, FTI executives place importance on the current economic and social structure as a key factor to consider in formulating tax reform policies, especially as Thailand has fully entered a Complete Aged Society, and the rapid changes in technology have caused Thai export products to fall behind global technology trends. This has resulted in a shift in the Thai economic structure and a slowdown in economic growth. In addition, the tax reform approach should be implemented gradually, with a clear plan and timeline to allow businesses to adapt, along with measures to mitigate the impact of tax rate adjustments on affected businesses. 
Furthermore, FTI executives believe that the adjustment of corporate income tax according to the Global Minimum Tax rate of 15%, which has been effective since January 1, 2025, may limit the government's ability to offer tax incentives to promote investment as before. Therefore, the government must consider its competitiveness in attracting foreign investment, taking into account factors such as raw material costs, logistics, etc., while also preparing to improve regulations and investment promotion conditions to align with developmental environments conducive to innovation (Rule of Law, patent laws, copyrights), and also enhance the quality of education and promote skilled labor to support emerging high-value technologies and industries.

The survey of FTI executives (CEO Survey) included 125 participants covering executives from 47 industrial groups and 76 provincial industrial councils, summarizing the results of the FTI CEO Poll No. 43 with 6 questions as follows:

1)    What factors should be considered in formulating Thai tax reform policies?
Rank 1: Economic and social structure     67.2%
Rank 2: Tax competitiveness against competing countries     66.4%
Rank 3: Fiscal stability and tax collection efficiency     39.2%
Rank 4: Compliance with international rules, such as OECD 13.6%

2)    How should the government implement Thai tax reform policies?
Rank 1: Gradually restructure taxes alongside  62.4%
     measures to mitigate impacts
Rank 2: Expand the tax base and promote economic integration    52.0%
Rank 3: Enhance the country’s tax competitiveness    44.0%
Rank 4: Adhere to principles of reducing income inequality 25.6%
     and tax based on property 

3)    What are the benefits of reducing the corporate income tax according to the Global Minimum Tax rate of 15%?
Rank 1: Reduce tax costs for companies, enhance financial liquidity    59.2%
Rank 2: Attract foreign direct investment (FDI) and reduce incentives 44.8%
     for investors to relocate to lower-tax countries
Rank 3: Promote business equality under a fair tax standard 43.2%
Rank 4: Stimulate reinvestment within the country 27.2%
     and increase non-tax incentives

4)    What concerns does the industrial sector have regarding the reduction of corporate income tax according to the Global Minimum Tax at 15%?
Rank 1: Competitiveness in attracting investment 64.0%
     from foreign investors in other areas, such as raw material costs, logistics, etc.
Rank 2: Adjusting benefits from BOI investment promotion measures    44.0%
Rank 3: The adjustment of operators in response to corporate income tax collection according to GMT 36.0%
Rank 4: Potential stagnation of foreign investor (FDI) investment plans 16.8%

5)    What is the industrial sector’s opinion on VAT increase policies?
Rank 1: Opposed 62.4%
Rank 2: In favor    37.6%
6)    What type of taxes should the government prioritize improving?
Rank 1: Import taxes 48.8%
Rank 2: Corporate income tax 44.8%
Rank 3: Land and building tax 38.4%
Rank 4: Value Added Tax (VAT) 32.8%

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Published by the Corporate Communications Division, Federation of Thai Industries (Tel: 0-2345-1051)
Prepared by the Economic and Academic Division, Federation of Thai Industries (Tel: 0-2345-1111)