Thailand not planning tax on gold soon, trade group says

BANGKOK, Aug 27 : Thailand's government is not planning to impose a gold tax soon, the country's Gold Traders Association said on Thursday, after a meeting that the finance ministry had said would include discussion on a tax.  

• Association President Jitti Tangsithpakdi said Thursday's talks were not about a tax but concerns about "grey" money, money laundering, and how to prevent those.

• "They didn't confirm that there won't be a tax. Just because we didn't discuss it doesn't mean it won't happen, but right now it's not an issue," he told Reuters.

• The ministry is still studying a tax, which was a concern, Jitti said, adding gold market activity was currently sluggish.

• The finance ministry said earlier this week that it would discuss a gold tax with the association as part of efforts to curb illicit funds.

• Another association member, Kritcharat Hirunyasiri, earlier told reporters the association would oppose any gold tax, if proposed, as it could undermine Thailand's position as a regional gold trading hub.

• The meeting focused on preventing illicit activities through gold trading, he said.

• One proposal discussed was using credit bureau checks for gold buyers to identify high-risk individuals, who may be hired to buy gold on behalf of others, he added. More than 7,000 gold shops nationwide could be enlisted for screening, he said.

• The finance ministry's permanent secretary, who chaired the meeting, could not be immediately reached for comment.

• Earlier this year, the central bank introduced rules to curb online gold trades, including a daily limit of 50 million baht ($1.5 million) per person per platform. It has also proposed cash payment limits for physical gold bar trades at gold shops.