In his "Thai Talk" column, Suthichai Yoon commented on moves afoot in the interim government to introduce estate or inheritance tax and comprehensive gift tax laws in Thailand. Suthichai suggests that, while these taxes do not raise substantial revenues relatively speaking, they could help deter abuse of power and corruption at high levels.

It is true that inheritance tax does not raise a significant proportion of tax revenues in countries that have the tax, and it is now regarded as an outmoded and unfair tax in many free-market economies. Last year Hong Kong abolished the tax as being inconsistent with its role as a financial centre and a disincentive to investment, while the US is in the process of raising the threshold for the tax to US$2 million, so that it will affect only a tiny proportion of the population.

The objective cited in Suthichai's article is laudable but much thought would have to be given to how effective such legislation would be in achieving that aim and what would be the effects on the economy and the vast majority of people who are not involved in corruption or abuse of power.

In countries where the threshold on inheritance tax is too low, often as a result of not raising it in line with asset inflation, it can cause great hardship to families who are suddenly hit by a bereavement and are forced to sell their home or business to pay death duties. Since Thailand does not have proper trust laws, it will not be possible for breadwinners to set up inheritance tax exempt trusts to provide for school fees and other needs of their dependants in the event of their untimely demise. Charging inheritance tax on foreigners' onshore assets, as happens in several jurisdictions, would make foreign individuals reluctant to own condos and other assets here, which could affect property developers and deter long-term foreign visitors and retirees. There would also potentially be a flight of capital, as the wealthy rush to move assets offshore. Meanwhile, the corrupt abusers of power would no doubt still find ways to carry on their business as usual, if they continue to see no risk of ever serving jail time or having their assets confiscated.

If the taxes can genuinely be clearly shown to have significant advantages from a revenue raising point of view without any adverse economic or social effects, by all means go ahead. But please don't introduce them as a knee-jerk reaction to the Thaksin regime or as a soft alternative to serious measures to tackle corruption.

George Morgan

Bangkok

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Implement taxes that will really benefit the country

Re: "Inheritance tax: Is the political will for real this time?" Opinion, November 23.

Sweden, with some of the world's highest taxes, has yearly wealth tax/estate tax, inheritance tax and gift taxes. But the thinking is now to remove the estate tax. In Sweden the problem is that assets are moved to offshore companies to avoid this taxation. Sweden's richest man, Ingvar Kamprad, a very popular leader of the world's biggest furniture retailer IKEA, moved the company's assets to a tax-free institution abroad.

A man of equivalent wealth to Bill Gates, Kamprad is not a spender, living a very simple life. But he didn't like the idea of losing control of the company. There is no hurry with these taxes in Thailand. They are quite unproductive and easy to manipulate. Thailand already has a higher corporate tax than Sweden!

But implement a land tax here. Thailand has excessive land speculation, which is extremely unproductive for this country. Implement taxes that improve the economy. To implement inheritance taxes to retroactively justify the ridiculous political play around the Shinawatra's share transfers is not a good idea. Sort out your thinking. The share transfer from Pojaman to her brother of about Bt700 million should be taxed. Doesn't Suthichai understand, it is a political play to discredit Thaksin by any means.

This play can backfire. If you like, continue to support this play, but I will inform the people here about the truth.

Neutral Observer

Bangkok

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Democracy starts with educating the young

Social critic Sulak Sivalak has correctly pointed out the signs for achieving a democratic society are not "on the horizon" any time soon (and are never achieved through popular uprisings or coups).

Sadly the political vultures and hyenas are starting to gather and re-group in order to have another feast and share the spoils.

Democracy must start with the young, by teaching them and developing their understanding of it through example. Teachers and elders should not be figures of authority; they should only set guidelines. People must learn that respect can only be gained if it is earned and deserved. Most of all, young people must question and criticise if there is reason to do so.

Unfortunately many teachers in Thailand still abuse their state-given authority. It will perhaps take decades rather than years to eradicate the feudalistic mindset still evident in everyday life in Thailand. Meanwhile the vultures are a species that is not going to die out any time soon.

Myrtha Leosawasthiphong

Chiang Mai

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Rule bending allows suspects freedom of movement

Re: "Pojaman flies out for 50th in HK", News, November 23.

If a person is under indictment or otherwise facing serious criminal charges in Thailand, are they allowed to leave the country on a whim? All sorts of exceptions to the rules have been made in order to inure the former prime minister and his family from facing the music of their misdeeds.

Some examples: not seizing assets after the coup; allowing unlimited transfer of funds overseas; allowing unlimited transfer of cash and valuables out of Thailand in suitcases with seemingly zero scrutiny by airport security or customs agents; allowing the family to keep their diplomatic passports. The list goes on and on.

It's obvious that if and when government authorities ever get around to issuing indictments, Thaksin, his family and their cohorts will be too far away and untouchable. Then we'll be subject to months or years of newspaper updates of extradition procedures - ad nauseum.

Rather than repeatedly allowing the cat out of the bag, why not pinch the bag shut and get on with the serious business at hand?

Brahmburgers

Chiang Rai

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Justice  must be seen to be done on illegal killings

Re: "Evidence to convict Thaksin 'is strong'", News, November 23.

It is heartening to see the growing momentum to address the "problem" of the extrajudicial killings that took place during Thaksin's tenure as prime minister. However, that this occurred and was tolerated is a shameful indictment as to the state of Thai society at the time and is in itself worrying.

The government has been accused, rightly or wrongly, of lassitude in its attempts to bring Thaksin to account for his many "transgressions" that were the supposed reason for the coup. If these requests to bring Thailand into the fold of the ICC now go unheeded by the new leaders it will be a very worrying sign indeed.

The announcement by the government of its intention to recognise the Rome Statute would send a very clear message to the nation, but more importantly to the international community which is currently critical of the new regime, that this grim chapter in Thailand's history is not going to be swept under the carpet.

Dr John Symons

Bangkok

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Multilingual homes don't make multilingual kids

Re: "Children soak up languages like a sponge, even in north-eastern Thailand", Letters, November 23.

Living in a bilingual environment doesn't necessarily ensure that kids can be bilingual. In some very extreme cases, kids grow up to have no fluent tongue at all. It all depends on how they were raised and educated.

While I haven't done any research in Isaan myself, I have met some Thai-foreign couples who tried to talk to their kids in a very confusing mix of languages. One Thai parent speaking English with a strong Thai accent or a non-Thai parent speaking bad Thai to their kids means the children grow up without a good and long-term language model. Teachers at school can never replace the role of parents when it comes to language learning.

Most Isaan families will probably speak the Isaan language at home, while the kids learn central Thai at school, thus ensuring a distinct and orderly condition for learning different languages.

Kong Hong Kong

Hong Kong

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Privatisation is a route back to crony capitalism

Finance Minister and Deputy Prime Minister Pridiyathorn Devakul said yesterday at an economic seminar organised by a local university that if pilot projects leasing ports or terminals to private operators work, the programme might be expanded, and the same system could be attempted with railway lines, or services.

This could well turn out to be the return of the crony capitalists, a sell off of state assets to "influential persons" a la Thaksinocracy, with the burden of turning a profit, running up costs and driving down services.

I haven't ridden the rails in the UK before or after the sell-off of the trains there, but you might ask someone who has what their impression of that move is. Wikipedia states: "Privatisation has had mixed results. Passenger growth has been stimulated, but this has been at extra cost to passengers, who have seen steady fare increases since 1997, and to the public purse which, by 2006, was paying a subsidy more than three times as large as British Rail had received."

Perhaps it would be better to roll up our sleeves and run these public assets as they should be run, for the benefit not of crony capital but of the Thai people.

John Francis Lee

Chiang Rai

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