SET Director Calls for Review of Excise Tax and Investment Strategy

Pachara Naripthaphan, a director at the Stock Exchange of Thailand (SET), recently addressed the nation's industrial investment strategy, arguing that current policies require a shift to ensure more equitable economic benefits. According to Khaosod Online, Pachara criticized the traditional 'trickle-down' economic model, noting that simply providing incentives to large-scale investors does not automatically benefit local small businesses or the workforce without specific mandates for local content, technology transfer, or domestic human resource development.

He highlighted that high-investment sectors like Electric Vehicles (EVs) and Data Centers currently face risks because they often rely on imported supply chains and offer relatively low domestic employment per unit of investment. Pachara emphasized that industrial development should not be a choice between 'old' and 'new' industries. Instead, he proposed that the government should focus on maximizing value capture from all sectors to ensure long-term economic stability.

For residents and those monitoring the Thai economy, this discussion suggests potential future shifts in how the government structures tax incentives and industrial requirements. While these proposals aim to foster a more inclusive economic environment, it remains to be confirmed whether the government will adopt these specific recommendations or adjust excise tax rates in the near term. Investors and business owners should monitor official policy announcements for any concrete changes to industrial regulations.