The future of a meaningful inheritance tax collection looks dim after no conclusion was reached in the second reading by the National Legislative Assembly's committee on Feb 9.
The version of the bill proposed by the Finance Ministry and approved by the cabinet sets the tax rate at 10% of the portion of inherited assets in excess of 50 million baht.
But there have been calls to extend the ceiling of the tax exemption to 80 million baht from 50 million and to reduce the rate to 8% from 10%.
Finance Minister Sommai Phasee declined to elaborate on Friday for fear of confusing the public but said there was no progress and no conclusion had been reached.
The NLA's subcommittee vetting the bill sent the legislation back to the Finance Ministry for reconsideration.
During the committee meeting, Mr Sommai explained the rate was not high.
He cited as an example an estate owner with assets worth 120 million baht to be equally given to his two children. The first 50 million each child receives is exempted and he will be taxed at 10% for the 10 million baht that exceeds the ceiling, or 1 million.
"One million baht for an inheritance of 60 million baht is negligible," he said.
On calls to reduce the rate to 8% from 10%, Mr Sommai said the law should be scrapped altogether if the change was accepted.
"The proposed rate of 10% for assets in excess of 50 million baht is already very low and almost amounts to nothing for state coffers," he said.
In any case, a Finance Ministry source said the tax was instrumental if only as a symbol of efforts to narrow the inequality gap, a goal laid down by Prime Minister Prayut Chan-o-cha.