The Baht Dilemma: Thai Gold Traders Battle Potential Tax

The gold trade in Thailand is pushing back against proposed tax measures by the central bank intended to slow down a currency rally. Industry leaders argue that imposing such a tax could severely damage businesses and compromise Thailand's position as a key regional trading hub for gold.

As the baht currency approaches a four-year high, its strength threatens the country's exports and tourism, crucial components of the Southeast Asian economy. MTS Gold's president, Kritcharat Hiranyasiri, warns that a tax on baht-denominated online gold trading could devastate the industry.

The Bank of Thailand has indicated that no final decision has been made regarding the tax, which is part of broader considerations to manage the currency's rise. With digital platforms enhancing gold trade, industry experts urge caution, highlighting Thailand's notable gold exports and import volumes.