Kasikorn Securities Expects Securities Transaction Tax to Lower Attractiveness of Thai Stock Market

The taxation will be collected when selling shares in the Thai stock market at the amount of 0.11%, which is the same amount that the government used to collect 30 years ago that came to a temporary suspension up until now. However, the government noted that the first year of implementation will collect half of the amount, which would be 0.055%.


Kasikorn Securities (KS) said the measures by the Thai government, although, it will generate additional 1-2 billion baht per year on revenue, there will be a negative impact on the market as the total trading value will decrease as the new regulation will decrease the attractiveness of trading in the Thai stock market for investors, especially, high-frequency trading. Lower attractiveness will also result in lower PE for securities and the stock exchange, while increasing costs for investors. More importantly, this will diminish interest of new listed companies to the market.