Thailand plans to remove taxes on repo transactions

ThailandÆs Finance Ministry will push for the removal of capital gains taxes on transactions in the repurchase (repo) market.

The existing law exacts taxes on trades to be calculated on capital gains and the plan is to remove them, leaving only the taxes on interest income from repo securities. According to Deputy Finance Permanent Secretary Sommai Phasee, this move will make the repo market a better barometer of interest rates.

There are two tiers of the repo market in Thailand. In tier 1, the Bank of Thailand is the counterparty, while in tier 2, nine banks and securities...

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