The Federation of Thai Capital Market Organizations (Fetco) is calling for a new long-term investment fund with tax rebates of up to 600,000 baht to replace the expired long-term equity fund (LTF), in an attempt to create a permanent investment vehicle that supports the stock market.Fetco chairman Paiboon Nalinthrangkurn said the proposal was submitted to the Finance Ministry and discussions are ongoing. The proposed tax deduction ceiling of 600,000 baht remains under consideration, with greater clarity expected in September.
The initiative is designed to establish a long-term savings and investment framework that can strengthen Thailand's capital market over time, said Mr Paiboon.
Unlike the former LTF programme, which was criticised for triggering waves of fund redemptions when investors reached the mandatory holding period, the new structure would operate as a permanent project, allowing fresh money to enter the market every year rather than creating cyclical selling pressure.
"The objective is to defuse the 'time bomb' effect of LTFs with a sustainable flow of long-term capital," he noted.
Under the proposal, investors would divide eligible investments into two categories. The first portion would focus on retirement savings, requiring investors to hold investments until age 55, similar to existing retirement-oriented products.
