Latest news with #KKP
Bangkok Post
20 hours ago
- Business
- Bangkok Post
The value of a financial plan
In recent months, Thais have faced a series of unsettling events. While the country awaits the impact of US tariffs, rising tensions along the Thai-Cambodian border add to the growing sense of unease. Amid heightened uncertainty, the Thai economy is expected to remain sluggish until the end of next year. This prolonged downturn will inevitably affect household finances and savings. Data indicates the majority of Thais lack savings and are unable to retire and maintain their quality of life. Nearly 30% of the Thai workforce has zero retirement savings. Tuition fees at universities are rising at a rate that outpaces the cost of living, while up to 20% of small and medium-sized enterprises (SMEs) are forced to shut down within the first five years. Hence, common suggestions such as save more, cut expenses or seek extra income may be insufficient. Instead, a comprehensive financial plan is necessary to safeguard people's financial future. COMMON MISTAKES A survey by Kiatnakin Phatra Financial Group (KKP) identified seven common financial mistakes many Thais make. 1. Not having a financial plan or realising its importance: Some 66% of Thais say they think about financial planning -- not a small number -- but only 16% actually follow through and develop a plan. Among Baby Boomers, either retired or near retirement, only 20% have crafted a financial plan. Furthermore, only 30% of Thais have enough money saved for retirement. 2. Planning for retirement too late: Starting early provides a significant advantage, as it allows more time to earn and save. If you start retirement planning too close to retirement age, you'll need to save a much larger sum within a shorter period, all while having a reduced ability to take financial risks. For example, if you save 5,000 baht per month and earn a 7% annual return on your assets, over 30 years this would grow to 5.89 million baht. Yet with only 10 years, it would amount to just 870,000 baht. 3. Not accounting for income uncertainty: In times of economic instability, many still expect their income to stay the same or increase. However, unforeseen events could cause income to drop, so it's important to factor in uncertainty. 4. Insufficient financial security: Insurance is often overlooked. Health problems can drain savings or derail financial plans, forcing people to use up their savings or investments. Insurance helps mitigate risks that are unlikely, but can be very costly if they occur. Fewer than 40% of Thais have life insurance. 5. Ignoring inflation: This inflation refers to not only the quarterly figure announced by the Bank of Thailand, but also the inflation that reflects each individual's lifestyle. How does inflation affect our savings? Suppose you plan to spend 30,000 baht per month for 25 years after retiring at age 60. You would need savings of 9 million baht without inflation. With 3% annual inflation included, you'd need 18.8 million baht. 6. Not investing anything: Many think avoiding investment means avoiding risk, but that's not true. Over time, the cost of living rises and reduces your purchasing power. You need to manage your money to outpace inflation. 7. Not diversifying risk: Some people concentrate their investments too heavily in one place or take excessive risks. This can undermine long-term plans when the market doesn't go as expected. CONCERNS FOR GEN Z According to Nasha Ananchotikul, head of deposit product development at KKP, the survey found Gen Z, aged 13 to 28, had the highest proportion of individuals with no intention to engage in financial planning, compared with older generations. In fact, 53.5% of Gen Z respondents said they have no intention to plan their finances -- significantly higher than the overall average of 18.5%, and much higher than Baby Boomers (17.5%), Gen X (15.9%) and Gen Y (21.1%). This reluctance among Gen Z is partly driven by beliefs such as "retirement is far away" or "bad things won't happen to me", which reflect some of the seven common planning mistakes, said Ms Nasha. She said failing to consider income instability is another key reason why the younger generation shows little interest in financial planning. This failure may partly stem from the perception that unemployment is not a major problem in Thailand, as the country has maintained a relatively strong employment rate for a long time, said Ms Nasha. The National Economic and Social Development Council (NESDC) reported Thailand's unemployment rate in the first quarter of 2025 was only 0.88%, about 360,000 people, down from 1.01% year-on-year. However, the number of quasi-unemployed surged by 14.6%, reaching more than 4.3 million. Many of these job losses stemmed from the economic downturn, which severely affected SMEs. Last year roughly 24,000 SMEs shuttered, according to government data. The quasi-unemployed are defined as people working fewer than 20 hours per week in the agricultural sector, or fewer than 24 hours per week in the non-agricultural sector. The NESDC also warned of rising unemployment among new graduates, with 89% of surveyed employers indicating reluctance to hire fresh graduates due to their lack of experience, skills and workplace readiness. According to Ms Nasha, given the increasing uncertainty surrounding individual and household income, personal financial planning -- whether for retirement or long-term goals -- has become more important than ever. "Starting to save early allows you to harness the power of compound interest. Those who save early build more wealth," she said. "The weaker the economy, the more essential it becomes to manage income wisely and plan ahead."
News18
23-07-2025
- Business
- News18
'Punished For Going Digital': Panic In Karnataka As GST Notices Worth Lakhs Haunt Small Traders
Last Updated: From milk booths to vegetable vendors and tea stalls, shopkeepers are switching to cash-only payments overnight due to fear of GST scrutiny Across Karnataka, small traders and workers are increasingly on the edge as a wave of GST notices reaches even the most modest businesses. 'These GST notices… will we also get one? My friend who is a flower seller got one. He doesn't even have the money to pay it. We work on daily wages, will they come and tax us too?" an auto driver asked News18, voicing a fear that now grips thousands of small traders and workers in the state. The commercial tax department has been issuing the notices to small businesses—bakeries, flower shops, kirana stores, tea stalls—with some demands running into lakhs and even crores. When explained that the notices were only for those above a particular slab, the auto driver frowned and asked: 'I hope they're not doing this to fund the bhagyas [guarantees]… We're barely able to make ends meet." His suspicion echoed the sentiment of many who have seen the notices land at their doors, asking them to pay money to the government based on digital transactions alone. Across Bengaluru, signs have started popping up: 'No UPI, Only Cash." From milk booths to vegetable vendors and tea stalls, shopkeepers are switching to cash-only payments overnight due to fear of GST scrutiny. The Karnataka Karmika Parishath (KKP), a group representing unregistered small traders, has planned a state-wide protest on July 25, demanding immediate withdrawal of the notices. Under president Ravi Shetty Byndur, they have announced a complete shop bandh on July 25, calling the move arbitrary and illegal. They allege the department has sent retrospective notices for four years, even to those exempt from GST, using UPI data that doesn't reflect business income accurately. 'Bakery owners, condiment storekeepers—everyone's got notices. They are threatening to stop the sale of essential goods like milk," said a protestor. UPI records, they claim, include personal and non-commercial payments too. 'The department was asleep since 2017. Now they're waking up and asking for dues," said Shetty. Kirana store owner Pradeep, who earns just under Rs 14 lakh a year, received a notice claiming he owed Rs 65 lakh in GST. 'They said they'd check if it's a mistake, but until then, I can't sleep. I have rent to pay, loans to clear, and my home to run," he told News18. Officers told him the demand was based on UPI trail data. Another official said he had no option but to pay because the transactions were all digitally recorded. 'We work hard and honestly, and now we are being punished for going digital," he added. If that wasn't enough, reports emerged of a small-time vegetable seller from Haveri, Shankargouda Hadimani, who runs a cart near the Municipal High School grounds and had received a GST notice for Rs 29 lakh. His alleged total digital transactions over four years were Rs 1.63 crore, most of it through UPI. He had no idea what to do, and the case has gone viral. The issue has spiralled but not without the blame-game, with the Congress and the BJP at each other's throats. In the middle of the political slugfest are thousands of small traders, hawkers, and vendors—many of whom are now locking up their UPI scanners, switching off their QR codes, and wondering how much their digital transactions and transparency are going to cost them next. Karnataka's deputy chief minister DK Shivakumar said the GST problem lies with the BJP government at the Centre. 'The Centre fixed the Rs 40 lakh limit. Our GST offices issued notices to over 14,000 traders—including vegetable, flower, and tender coconut vendors. The BJP must withdraw these notices. Rahul Gandhi always opposed GST in this form. The Centre is pressuring states to collect it. Karnataka contributes one of the highest shares to the GST pool, but we don't want small businesses to suffer," he said. 'We have asked for more funds from the Centre for two years, but BJP MPs don't speak for Karnataka. For every Rs 100 we give, we get just Rs 13 back," he added. But the BJP has hit right back, saying the Congress was misleading the people of the state. Union minister for food, public distribution and consumer affairs Pralhad Joshi said the notices were issued by the state and not the Centre. 'It is Karnataka's own commercial tax department that issued these. The state government is pretending to be innocent to avoid blame. If this was a central move, it would've happened in other states too. Why only Karnataka?" he asked. Chief minister Siddaramaiah, who holds the finance portfolio, said he will take up the matter in the next GST Council meeting in Delhi. He instructed the commercial tax department to reach out to affected traders and said that misinformation was being spread. A top official of the department said the notices are not final tax demands and that they are only asking traders to share transaction details. The Congress government in Karnataka, having blamed the BJP-led Centre for the tax mess, has launched its own version of the 'Know GST' campaign, a state-wide outreach programme to create awareness. The first workshop was held in Koramangala, Bengaluru, where officials said GST registration is mandatory for businesses with annual turnover exceeding Rs 40 lakh for goods and Rs 20 lakh for services. They claimed they had tracked 14,000 traders using UPI data and sent notices to those crossing thresholds. The department insisted the communications were not final tax demands but a step to verify transactions and register eligible traders. The traders, however, are furious—not just at the size of the tax demands, but also at being asked to pay arrears for four years without warning. With traders stopping QR payments and shifting to cash, digital transactions across the city have taken a hit. BJP state president BY Vijayendra alleged that Siddaramaiah was using the GST dues to fill coffers and fund guarantee schemes. 'The state is cracking down on small traders and forcing them to cough up old dues with penalties. They're being pushed to the brink," he said. The department issued a statement on July 11 claiming that 98,915 taxpayers are registered under the composition scheme. Traders earning less than Rs 1.5 crore a year can opt for the scheme and pay just 1 per cent GST (0.5 per cent SGST and 0.5 per cent CGST). However, the department added that this scheme doesn't apply to unregistered turnover. They also cited Section 22 of the GST Act, 2017, which mandates GST registration for anyone exceeding the threshold, regardless of payment mode—cash, UPI, or otherwise. They reiterated that applicable taxes would be recovered from any trader who has received consideration beyond the limits. A helpline (1800 425 6300) has been set up for complaints, and workshops will expand state-wide. But many traders claim the notices clearly demand tax arrears from 2021–22 onwards, with amounts nearing Rs 40 lakh in some cases. top videos View all Byndur, however, dismissed the government's claim and said officials were threatening traders with penalties going back to 2021–22. He accused the government of trying to divide traders with this campaign just days ahead of the strike. Former chief minister and Haveri Lok Sabha MP Basavaraj Bommai said the move showed the state's desperation. 'The state treasury is under stress due to shortfalls in the first quarter. These harsh steps have been ordered from the top," he said. About the Author Rohini Swamy Rohini Swamy, Associate Editor at News18, has been a journalist for nearly two decades in the television and digital space. She covers south India for News18's digital platform. She has previously worked with More Get breaking news, in-depth analysis, and expert perspectives on everything from politics to crime and society. Stay informed with the latest India news only on News18. Download the News18 App to stay updated! tags : BJP congress DK Shivakumar Goods and services tax GST karnataka news18 specials Siddaramaiah view comments Location : Bengaluru, India, India First Published: July 23, 2025, 10:37 IST News india 'Punished For Going Digital': Panic In Karnataka As GST Notices Worth Lakhs Haunt Small Traders Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
22-07-2025
- Business
- Time of India
Karnataka government begins ‘Know GST' campaign to address small traders' UPI concerns
Bengaluru: Facing backlash from unregistered traders over Goods & Services Tax (GST) enforcement based on Unified Payments Interface (UPI) transactions, Karnataka govt has launched a statewide outreach programme to create awareness about GST. The commercial taxes department began the campaign — titled Know GST — with the first workshop held in Koramangala Monday. GST rules mandate that traders should register if their annual turnover exceeds Rs 40 lakh for goods or Rs 20 lakh for services. Earlier this month, the commercial taxes department tracked around 14,000 traders using UPI data and found that many had accepted payments beyond these thresholds. Notices were sent, triggering panic, as traders were allegedly asked to pay tax arrears from 2021-22 onwards, with some cases reaching close to Rs 40 lakh. Many traders stopped accepting QR payments, switching to cash, which affected digital transactions in the city. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru Unregistered traders have formed a forum under Karnataka Karmika Parishat (KKP) and called for a strike on July 23 and 24. They have also planned a complete shop shutdown on July 25, threatening to stop selling essential goods such as milk. "Most traders who received notices are owners of bakeries and condiment stores. UPI transactions include personal payments too, so they don't reflect business exactly. The commercial taxes department was in a slumber since GST rolled out in 2017 and has suddenly woken up to claim arrears. The move is arbitrary and illegal," KKP president Ravi Shetty Byndur said. CM's assurance Chief minister Siddaramaiah, who holds the finance portfolio, has assured traders he will take up the issue with the Centre at the next GST council meeting. He has also asked the department to address traders' concerns, prompting the Know GST campaign. "The objective is just to get eligible traders registered. Misinformation is being spread by people with vested interests. The notices we served aren't tax demands — we haven't assessed the tax yet. We are only asking traders to submit transaction details," said commercial taxes commissioner Vipul Bansal. Byndur, however, dismissed this claim and said they have received tax demands. The department has set up a helpline (1800 425 6300) to let traders report harassment or bribery. Workshops will soon be expanded across the state. According to Byndur, however, officials have threatened traders with penalties for non-compliance since 2021-22. He accused the department of trying to divide traders by launching the campaign after the strike call. Larger trade bodies such as the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) have backed the agitators. "It's unfair to demand tax suddenly from small traders without educating them. FKCCI will stand by the traders," its president MG Balakrishna said. Dept clarifies, but traders unsatisfied Several small traders Monday expressed dissatisfaction with the clarification issued by the commercial taxes department, saying it failed to address their concerns over the recent GST filing notices. More than 70 traders attended the session organised by the department and argued that the enforcement would hurt their margins and increase the burden on small businesses. Traders said the official explanation lacked clarity and didn't offer any assurance of relief or exemption for smaller players. At the session, addressed by Meera Suresh Pandit, joint commissioner, commercial taxes (administration), several vendors raised questions. The officials responded by saying they were only implementing central rules that have existed since 2017. Here are some key issues raised: Business is already in losses A trader who has been supplying goods to smaller shops for 25 years said: "Because of too much competition and high prices, business is already low. We're barely making profits. Why the new taxation? It will only hurt traders more." Pandit responded: "This isn't something we implemented. It is part of the GST rules from 2017. After UPI transactions increased, the govt asked us to implement them. The buyer will be paying you taxes for the goods for which you will be paying us. States like Uttar Pradesh, Andhra Pradesh, and Tamil Nadu have already enforced this." Too much for small traders A kirana store owner from central Bengaluru asked: "Don't you think the taxes are too much for a small trader? Why can't you relax the rules to Rs 1 crore for goods and Rs 50 lakh for services?" The official replied: "We sent the representations as communication, not final notices. If traders think the rates are high, they can submit a representation to the govt through associations like FKCCI. A decision will be taken by the higher authorities." My income is Rs 11L, why did i get a notice? A 40-year-old small shop owner said: "I sell cool drinks and cigarettes. My yearly income is Rs 11.7 lakh, but I still received a notice asking me to pay GST." The official responded: "If your income is below the tax slab, you can step into the office help desk with your receipts and income proof. We can withdraw the certificate if it is found that you are not liable."
Yahoo
17-06-2025
- Business
- Yahoo
Kiatnakin Phatra and Goldman Sachs collaboration expands Thai investment
Kiatnakin Phatra Financial Group (KKP) has announced a collaboration with Goldman Sachs Asset Management to broaden global investment opportunities for Thailand-based investors. This collaboration aligns with Bangkok-based KKP's goal to strengthen its wealth management services and broadens Goldman Sachs Asset Management's third-party wealth operations. Under the alliance, Goldman Sachs Asset Management will offer KKP investment advisory support by delivering model portfolios covering diverse asset classes, such as stocks, bonds, and alternative investments. KKP will gain access to Goldman Sachs Asset Management's worldwide market perspectives and ongoing knowledge exchange between the two entities. The partnership emphasises expanding Discretionary Portfolio Management (DPM) as a core objective. KKP considers DPM a tool for clients looking for a diversified, adaptable, and risk-conscious strategy to tackle the challenges of today's intricate and fluctuating global markets. Under the terms of the agreement, Goldman Sachs Asset Management will provide exclusive investment advisory services in multi-asset strategies to KKP in Thailand. Goldman Sachs Asset Management managing director Sabrina Gan said: 'We see opportunities to expand our wealth distribution business in Thailand, where investors are increasingly seeking global opportunities. 'This collaboration, combining Goldman Sachs Asset Management's global investment capabilities with KKP's local knowledge, will allow us to work together to provide differentiated opportunities to investors in Thailand.' Kiatnakin Phatra Securities managing director and head of wealth management Narit Kosalathip said: 'Encouraging clients to reduce home bias and diversify internationally has been central to our investment philosophy for over a decade—and it has served our clients well. 'We have invested heavily to build global investment capabilities, and this groundbreaking collaboration with Goldman Sachs Asset Management will elevate our ability to deliver world-class, globally diversified portfolios tailored to the evolving needs of Thai investors.' The two companies are also considering further opportunities for partnership, such as KKP potentially distributing investment products overseen by Goldman Sachs Asset Management. According to KKP, amid Thailand's evolving wealth management scene, where investors are diversifying globally, younger generations are actively managing family wealth, and alternative investments are gaining traction, KKP and Goldman Sachs Asset Management are partnering to guide investors through complex markets with proactive, diversified portfolio strategies. In April, Dubai-based banking group Mashreq formed an alliance with Goldman Sachs Asset Management to enhance its wealth management offerings. The collaboration aimed to help Mashreq make a variety of discretionary portfolios available for its wealth clients. "Kiatnakin Phatra and Goldman Sachs collaboration expands Thai investment " was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
