An Analysis of a Tax Structure Appropriate for the Economic Development of Thailand

Abstract

In this journal research investigation, the researcher analyzes the influence of the tax structure of the Kingdom of Thailand (Thailand) on its economic development. In carrying out this investigation, the researcher collected qualitative data from the contents of in-depth interviews with key informants. Germane quantitative data were collected by means of constructing and applying a macroeconomic model incorporating a model of Thailand’s tax structure. Relevant annual time series data from the period between 1997 and 2016

Were analyzed with the following results: If tax measures were used to ensure that the nation’s economy grew efficiently, the method of reducing direct taxes would have to be utilized. The income tax rates for both personal income and corporate income tax would have to be reduced in addition to reducing special business tax by five percent. Indirect taxes in the case of value added tax (VAT) is five percent, excise tax and export tax would have to be reduced by five percent. If these tax reduction measures were adopted and applied to Thailand’s economy, the results would show economic growth of 462,783.40 million baht, thereby constituting an increase of 3.22 percent.