The Thai government is seeking clarifications on its legal powers post-parliament dissolution, addressing key issues like tax on gold sales and public appointments.
The Cabinet Secretariat has sent an urgent letter to several government agencies—including the Ministry of Finance, Ministry of Tourism and Sports, Office of the Council of State, Election Commission, and Budget Bureau—to review the implementation of laws and regulations following the dissolution of the House of Representatives.
The letter specifically addresses questions of whether certain actions, such as implementing taxes on gold sales and making public appointments, can proceed legally despite the dissolution. The Cabinet has urged that the current guidelines be based on precedents from 2023, although the unique situation of 2025, with the ongoing political and economic changes, requires clear guidance to ensure consistency and legality in these processes.
Key Points from the Urgent Letter
-
- Emergency Situations and Tax Relief: The letter highlighted that Thailand is facing urgent national crises, including security issues along the Thai-Cambodian border and severe flooding. The government has deemed it necessary to implement tax relief measures to assist affected citizens and businesses. These measures are not considered as “special favours” but as urgent, routine steps that any government, regardless of its political makeup, must take to address the crisis effectively.
- International Commitments: Thailand must continue to meet its international trade obligations, such as those under Free Trade Agreements (FTA), and World Trade Organization (WTO) commitments. These include reducing tariffs on agricultural products like soybeans and onions, which are vital for local industries. Failure to act would have significant consequences on both production and consumption, as well as investor confidence.
- Gold Sales Tax Legislation: One of the most pressing issues raised is the tax on gold trading, which the government sees as a legitimate source of revenue. The letter clarifies that this tax measure does not fall under exemptions or reductions, but rather aims to increase state revenue.
- Public Project Funding: The Cabinet has confirmed that certain ongoing projects, such as the power plant efficiency improvement project and other energy-related infrastructure projects, should continue as planned, despite the dissolution. These projects were previously approved under the Annual Budget Act.
- Public Appointments: The letter also addresses appointments made by ministers, such as the Director of the Government Savings Bank, confirming that if these have already passed through the relevant board approval processes, they can proceed. The letter stresses the importance of continuing essential government functions during the transitional period.
- Foreign Travel for Official Duties: The Cabinet clarified that official overseas trips, such as those for the World Economic Forum (WEF), should continue as planned, as they were approved in the annual budget and align with Thailand’s foreign relations commitments.
- Award Presentations: The letter also confirmed that ministers can still proceed with award ceremonies, such as the ASEAN Para Games medal ceremonies, as these are considered part of ongoing duties and should not be delayed.