Bangkok: IAA Secretary-General warns that if Thailand is taxed more than 20% by the US, it could significantly impact the capital and business markets.
According to Thai News Agency, the Secretary-General of the Investment Analysts Association (IAA), Mr. Sombat Narawuttichai, discussed the impending negotiations led by Deputy Prime Minister and Minister of Finance, Mr. Pichai Chunhavajira, with the United States regarding tax measures. These negotiations are expected to conclude by the July 9, 2025 deadline. There is concern that if the tax exceeds 20%, it could lead to a shock in both the stock and business markets. The situation in the city has already severely affected investor confidence.
Mr. Narawuttichai expressed optimism that the negotiations would not take long, given the approaching deadline. The market anticipates an import tax rate between 15% and 20%. However, a higher tax rate could create significant market disruptions. He expects a conclusion by the deadline but noted the possibility of the US imposing a certain level of tax with a potential extension of 30 days if negotiations are prolonged. The direction of the negotiations remains crucial.
The political climate is another significant factor impacting investor confidence. The ability of the government to implement economic stimulus measures is under scrutiny. Although a reduction in interest rates could positively influence the market, investors must stay vigilant about various economic factors affecting the operations of listed companies.
Mr. Pithi Riyapol Kongwanich, a strategist from Bualuang Securities Public Company Limited, highlighted the impact of political developments on the stock market. The Constitutional Court's order for the Prime Minister to cease duties initially boosted the market as it alleviated fears of a coup. Political stability remains essential for further market recovery, which is not currently present.