Fiscal and tax reform needed to reduce poverty gap

Thai baht

Thai baht:

The Research Subcommittee of the National Counter Corruption Commission suggested that tax and fiscal reform must change in order to upgrade the country into an equitable and fair Thai society.

The Research Subcommittee of the National Counter Corruption Commission, Professor Doctor Pasuk Phongpichit recommended that a fair society must have a taxation system that is acceptable and fair. Those receiving many benefits from public expenditure should be willing to pay taxes at a greater proportion of income, compared to those receiving fewer benefits.

She stated further that the government needed more revenue for the production of public goods and provision of public services in order to effectively mitigate inequality. Most resources used by the government must come from duties and tax. While governments often have tax relief policies, the poor bear a higher tax burden than the rich. This was the reason why the gap between the rich and the poor in Thailand had increased.

She believed that if the government increase 10% of direct revenue and spend it wisely on equitable allocation of resources in Thai society, the poor would be decreased by 3%.

Meanwhile, non-governmental organization officer, Doctor Soipetch Resanond, said that the government should indoctrinate moral to the rich while enhance diligence to the poor in the society.

Statistics from TDRI showed data on property ownership of various groups of Thai families that the properties owned by the richest 20% of the country were 69 times higher than the poorest families which was 20% of the country. (NNT)