FX.co ★ Thailand Weighs Gold Tax to Cool Baht Rally

The Bank of Thailand, in collaboration with the Finance Ministry, is evaluating the introduction of a tax on gold transactions conducted online in Thai baht, as reported by Bloomberg News referencing informed sources. This proposed levy is designed to temper the strengthening of the baht, which poses a challenge to the nation's exports and tourism industry. Notably, transactions in U.S. dollars, trading on futures exchanges, or through bullion shops might be exempted from this tax. Authorities suggest that such a measure would decrease gold exports and increase the cost of domestic ownership, given that the influx of dollars from gold shipments has contributed to the appreciation of the baht. Officials from the Bank of Thailand are scheduled to hold discussions with gold traders on Monday to examine the metal's effects and to explore stricter reporting requirements. Additional talks with the Finance Ministry are planned, with a final decision anticipated only after the formation of a new cabinet. The tax, which might take the form of a special business levy, could be imposed when sellers exchange their dollar earnings for baht, although the exact rates have yet to be determined.