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Thavorn Rujivanarom, Lead Partner at PwC Tax & Legal Consultant Ltd., shared his insights on tax challenges amid Thailand's political unrest with Money Channel’s Open Up programme.
Thailand will likely face a challenge to increase government revenue in the near term as the country's prolonged political stalemate disrupts tax collection and the implementation of tax policy changes.
Even so, the recent changes in the taxation regime, including lower corporate income tax rates, will help enhance the country's competitiveness and lure foreign money as countries across Southeast Asia prepare for the ASEAN Economic Community to take effect by early 2016, Thavorn said.
Citing Paying Taxes 2014: The global picture—a joint study from PwC and the World Bank Group, he said Thailand's ranking for the ease of paying taxes has markedly improved to 70th place from 96th.
"Putting aside the poiltical problems, we've seen several improvements in the Thai tax system in recent years; one being the long-awaited cut in the corporate income tax rate to 20%, which helps increase Thailand's competitiveness in terms of investment," he said.