"Phaophum" welcomes the Ministry of Finance's continuation of the Negative Income Tax (NIT) system from the Pheu Thai government era, focusing on helping the poor. He proposes an income threshold below 60,000 baht per year, with a maximum benefit of 12,000 baht annually.
7 Jun 2026 GMT+7 Mr. Phaophum Rojanasakul, Deputy Leader of the Pheu Thai Party and former Deputy Minister of Finance, commented on the Ministry of Finance's plan to implement the Negative Income Tax (NIT) system, saying he supports and is pleased that the Ministry of Finance is continuing the NIT system which the Pheu Thai government had consistently promoted. He said the system fits Thai society well for four reasons: 1. There is a large informal workforce, 2. High inequality, 3. Fragmented welfare, 4. Lack of systematic income data for the population. These four challenges are major issues, and NIT is an excellent tool to address them.
Mr. Phaophum further explained, NIT transfers money directly to people with incomes below the threshold, instead of taxing them. They receive cash transfers to support their livelihood. Each person receives a different amount, with those in greater need getting more. This directly addresses inequality and incentivizes people to enter the tax system without paying taxes. It also solves the problem of income data for informal workers.
He outlined several challenges he wants the Ministry of Finance to consider regarding this matter:
1. During the phase-in period (low income - government adds support based on income), plateau (fixed benefit), and phase-out (higher income - decreasing benefits), what income thresholds will be set? Previous studies suggested phase-in around 32,000 baht/year, plateau between 32,000-36,000 baht/year, and phase-out from 36,000-60,000 baht/year, with citizens receiving up to 12,000 baht/year.
2. The Revenue Department's income verification system must be improved to handle the expected surge in income declarations from citizens.
3. Linking welfare data among agencies through cooperation may work initially, but in the long term, specific legislation on NIT and mandatory data sharing among agencies should be enacted.
4. Beyond NIT, a systemic approach is needed to coordinate Thailand's fragmented welfare programs.
5. Budget considerations are important. Implementation can proceed gradually, starting with NIT for formal workers, then expanding to informal workers as budget increases.