Lotto winnings stamp duty rises

>> Lottery winnings will be subject to 2% stamp duty, an increase from 0.25%, when an amendment to the revenue code takes effect, the Revenue Department says.

Prasong Poontaneat, the department’s director-general, said the planned amendment is intended to reflect inflation and reduce disparity among winners.

According to Mr Prasong, the current rate of 0.25% has been in use for 36 years since the first lottery prize was one million baht. The first prize is now 6 million baht per ticket.

Moreover, while the winners of other prizes are subject to 5% tax and the windfalls are also subject to annual personal income tax, lottery winnings are exempted from personal income tax.

He said the amount of tax paid by the winners of other prizes would vary depending on their incomes.

Mr Prasong also said the tax increase is not intended to help generate the income for the state because revenue from lottery winning tax is estimated at 100 million baht per draw.

“We don’t hope to get more money from this revision. But this is to ensure fairness and to reflect the changing economic situation,” he said.

The proposed amendment to the revenue code has been put up for public input and it is pending the cabinet consideration, he said.