Inheritance Tax and Reducing Economic Inequality

Abstract

Inheritance tax is considered to be a mechanism that fosters social justice by mitigating the advantages of beneficiaries from inherited wealth. However, the effectiveness of implementing an inheritance tax in Thailand to reduce economic inequality is a subject of inquiry. This article aims to provide an analysis of the government's approach to inheritance tax in addressing economic inequality, highlighting the challenges and obstacles faced during its collection. The article examines the Inheritance Tax Act of 2015, which seeks to advance social justice and improve societal well-being, by analyzing academic and research papers from Thailand and abroad. The study reveals that the current legislative mechanism faces practical challenges due to its narrow tax base, limited focus on registered property, and insufficient measures to address unregistered assets, resulting in a lack of tax equality. Additionally, the combination of a fixed and low tax rate further limits the Act's coverage and ability to achieve the government's goals of fairness and societal improvement. Thus, the article proposes the necessity of amendments to enhance efficiency and expand the coverage of inheritance tax collection in Thailand.