Conflict, Legitimacy and Government Reform: Equitable Allocation of ...

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Panel Discussion tax rate of an indirect tax is regressive and the more government relies on indirect taxes, the heavier tax burden will be borne by the poor. Consequently, indirect taxation reduces the poor’s income even more or increases inequality, implying that the poor subsidizes the rich through taxation. Thailand does not have other direct taxes used in foreign countries as a supplementary measure to mitigate inequality or even though it has some but they are underdeveloped. They include property tax, inheritance tax, capital gain tax and interest income tax. Presently, the withholding tax rate of the last one is only 15%, which is rather low compared to other income taxes. Table 5: Proportion of direct and indirect taxes in England, Europe and Thailand in 2000s (%) Country Direct taxes Indirect taxes Total England 51.6 49.4 100.0 Europe (average) 50.0 50.0 100.0 Thailand 40.5 59.5 100.0 Source: OECD, Ministry of Finance Most revenue of Thai government comes from indirect taxes (valueadded tax, excise tax, oil tax, cigarette tax, liquor tax etc.). During late 1980s - late 1990s, the proportion of this revenue was as high as 80 per cent of total tax revenue but presently this proportion came down to 60 per cent while in developed countries like OECD, the share of indirect taxes is around 50 per cent (Table 5). As mentioned above, indirect taxes are regressive, that is, the poor bear a higher tax burden than the rich, thus increasing inequality. Thus, in Thailand our taxation system is rather unfriendly to the poor and contributes to exacerbation of inequality. Available relevant studies support this conclusion (Medhi, 1975; Wiboonlak, 1983; Wit, 1977; TDRI, 2003; Pichit, 1986; Duangmanee and associates, 2009; Hyun Hwa Son, n.d.). 53
54 KPI Congress XI Even though direct taxes like personal income tax are progressive, in reality only a small number of high income earners pay a high tax rate and since tax evasion is rampant, the government cannot fully collect personal income tax, rendering the progressive rate ineffectual (Supreeya, 2001; Thanasai, 1994). Even though there are varied tax rates applied to different income brackets, ranging from 0%, 10%, 20%, 30% and 37%, in reality an average rate is only 5%. As a result, overall taxation system of Thailand is regressive rather than progressive. The government needs more revenue for 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 taxes. In developed countries, a proportion of taxes to GDP in percentage ranges around 40-50% but tax collection of Thailand is only 17% of GDP, which is lower than middle-income countries like Thailand, e.g. Venezuela and Turkey (see Table 6). Moreover, the proportion of personal income tax is very low, that is, only 13 per cent of total tax revenue while other countries range from 20 to over 30 per cent. Table 6: Percentage of tax revenue to GDP of various countries in 2007 Country % Thailand 17.0 Venezuela 25.0 Japan 27.4 United States 28.0 Turkey 32.5 Russia 36.9 England 39.0 Germany 40.6 Sweden 49.7 Source: Ministry of Finance and Heritage Foundation, 2008
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Conflict, Legitimacy and Government
Page 5 and 6: KPI Congress XI Conflict, Legitimac
Page 7 and 8: 6 KPI Congress XI CONTENTS Pages In
Page 9 and 10: 8 KPI Congress XI Group 3: Judicial
Page 12 and 13: KPI Congress XI Conflict, Legitimac
Page 14 and 15: Conflict, Legitimacy and Government
Page 22 and 23: KPI Congress XI Program Conflict, L
Page 28 and 29: Exhibition program Conflict, Legiti
Page 32 and 33: His Royal Highness Crown Prince Mah
Page 36: Panel Discussion on Conflict, Legit
Page 39 and 40: 38 KPI Congress XI Professor Dr. Kr
Page 41 and 42: 40 KPI Congress XI cent. That means
Page 43 and 44: 42 KPI Congress XI country’s popu
Page 45 and 46: 44 KPI Congress XI Table 3: Average
Page 47 and 48: 46 KPI Congress XI implies, present
Page 49 and 50: 48 KPI Congress XI accelerated rate
Page 51 and 52: 50 KPI Congress XI inheritance tax
Page 53: 52 KPI Congress XI A good taxation
Page 57 and 58: 56 KPI Congress XI suggested that T
Page 59 and 60: 58 KPI Congress XI Nevertheless, mo
Page 61 and 62: 60 KPI Congress XI the taxation sys
Page 63 and 64: 62 KPI Congress XI One common conte
Page 65 and 66: 64 KPI Congress XI influential pers
Page 67 and 68: 66 KPI Congress XI Pranee Thinnakor
Page 69 and 70: 68 KPI Congress XI to discuss the p
Page 71 and 72: 70 KPI Congress XI A state like Tha
Page 73 and 74: 72 KPI Congress XI The second way o
Page 75 and 76: 74 KPI Congress XI No matter whethe
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Page 81 and 82: 80 KPI Congress XI Those of us who
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Page 87 and 88: 86 KPI Congress XI their national l
Page 89 and 90: 88 KPI Congress XI participants in
Page 91 and 92: 90 KPI Congress XI Canadian Interna
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Page 97 and 98: 96 KPI Congress XI Fundamental Link
Page 99 and 100: 98 KPI Congress XI Creating a merit
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104 KPI Congress XI tool through wh
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106 KPI Congress XI a web-site link
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108 KPI Congress XI Examples of loc
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110 KPI Congress XI fairness which
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112 KPI Congress XI implementing ru
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114 KPI Congress XI The World Movem
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Government and Political Legitimacy
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124 KPI Congress XI (3) Prohibition
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126 KPI Congress XI government stab
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128 KPI Congress XI local resources
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130 KPI Congress XI rights to the l
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132 KPI Congress XI governments as
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134 KPI Congress XI administrative
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Reform of Economic Policy for Reduc
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Group 3 Judicial Review and Judicia
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142 KPI Congress XI enhanced by a c
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Judicial Activism Judicial Review a
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Judicial Review and Judicial Activi
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Judicial Review and Judicial Activi
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Group 4 Innovation for Political Co
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154 KPI Congress XI Pride is consid
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156 KPI Congress XI 1) Perception o
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158 KPI Congress XI sustainable sol
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160 KPI Congress XI Recommendation
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Citizen Politics in Checking of the
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The Strategy of Public Administrati
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Bureaucratic Reform Dr. Pheeraphon
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Group 7 Reforming Local Government
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180 KPI Congress XI media. In the p
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182 KPI Congress XI informal worker
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184 KPI Congress XI opened up for a
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186 KPI Congress XI community organ
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188 KPI Congress XI 6. Amend the lo
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Biographical Information
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194 KPI Congress XI Others Certifie
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196 KPI Congress XI Bovornsak Uwann
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198 KPI Congress XI Corruption in t
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200 KPI Congress XI Positions: Educ
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202 KPI Congress XI Other Positions
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204 KPI Congress XI Current positio
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