Thailand’s Caretaker Cabinet Keeps Services Running as Gold-Tax Debate Lingers

Thailand’s caretaker Cabinet has quietly asked state agencies for legal advice on how far it can go while the country waits for a new parliament. From a proposed tax on gold trades to approvals for overseas forums, ministers are trying to walk the constitutional tightrope without derailing public services or spooking investors.

At a Glance

• Caretaker status limits major policy moves but still allows routine administration.

• Government lawyers are assessing whether a new gold-trading tax violates the post-dissolution freeze on fresh legislation.

• Ministers argue disaster relief and tariff cuts are urgent and therefore exempt from the ban on big-ticket spending.

• The Election Commission (EC) must sign off on any appointments, foreign travel or budget reallocations that could be viewed as political leverage.

• Analysts warn missteps could hurt both baht stability and Thailand’s reputation for predictable rules.

Why This Matters Beyond the Bubble

Although Bangkok’s political theatre often feels distant, the current limbo has real-world stakes for households and companies alike. A caretaker Cabinet can still manage day-to-day governance, yet its powers shrink the moment the House dissolves. The charter’s Section 169 bars any actions that might give incumbents an electoral edge or saddle the next administration with hefty obligations. That legal brake is colliding with deadly flash-floods, border flare-ups with Cambodia and an economy that needs every baht of revenue it can muster. Failure to move quickly on tax relief, import-tariff cuts or energy-grid upgrades could prolong hardships, delay investment and, in the worst case, trigger lawsuits over dereliction of duty.

What the Cabinet Can Still Do — and Why

Constitutional scholars say a caretaker government retains four core functions: keep essential services running, maintain security, manage disasters and honour international commitments. Within those guardrails, the Prime Minister may chair weekly meetings, deploy emergency budgets approved beforehand and even declare martial law if national security is at stake. That is why Finance Ministry officials believe they can press ahead with:

Temporary tax relief for flood-hit provinces,

Tariff reductions on soybeans and onions required under WTO rules,

Upgrades to power-plant turbines funded in the current Budget Act.

Critically, these moves are described as “routine continuity” rather than fresh policy, a distinction that gives them immunity from Section 169’s prohibitions. Still, each decision must be vetted by the Council of State and — when in doubt — cleared by the EC to pre-empt legal challenges.

The Gold-Tax Question That Won’t Go Away

Bangkok’s bullion market is one of the busiest in Asia, handling upwards of ฿450 B in trades each year. The Finance Ministry wants to capture a slice of that flow through a specific-business tax on online gold transactions, arguing it will curb money-laundering and temper baht volatility. Traders counter that it risks pushing deals offshore, eroding Thailand’s role as a regional hub.

Caretaker ministers face a legal dilemma: introducing a brand-new tax could be seen as a “policy innovation,” something Section 169 discourages. Supporters say a draft law already circulated in 2025 merely fine-tunes existing revenue codes, so it should be allowed to proceed. Critics disagree, warning any signature before the election could be struck down in court and invite compensation claims from industry players. For now, the Cabinet Secretariat has ordered a line-by-line comparison with 2023 precedents to judge whether the measure is an adjustment or an entirely new obligation.

Appointments, Air Tickets and Awards — Grey Areas Under the Microscope

Beyond taxes, the urgent memo flagged several everyday tasks that suddenly look controversial:• Public-sector appointments – A new director at the Government Savings Bank has board approval, but the EC must confirm the post isn’t being used for political patronage.• Foreign travel – Ministers booked for the World Economic Forum in Davos insist the trip was budgeted long ago and is vital for attracting green-energy investors. Yet any hint of campaign messaging could breach Section 169(4).• Award ceremonies – Handing medals to ASEAN Para Games athletes seems harmless, but the optics of televised praise just weeks before an election are sensitive. The EC’s unofficial guideline: proceed, but keep speeches strictly sporting.

Watchdog in Chief: The Election Commission

Under Thailand’s complex checks-and-balances system, the EC holds the whistle during a dissolution. It can demand revisions, delay spending or even file criminal charges if it believes caretaker ministers overstep. Lawyers recall 2023, when a planned cash-handout app was frozen for breaching the “no new projects” rule. This time, officials have been instructed to seek written EC consent for anything that:

• reshuffles civil servants,

• taps the emergency-contingency fund,

• launches a regulation not yet in force,

• deploys state media in a way that looks like campaign advertising.The watchdog’s stance has remained consistent: ordinary administration is fine; anything that could sway voters is not.

What Comes Next — and What to Watch

The current Cabinet will stay on until the King endorses a new line-up after elections expected in late March. Until then:• Expect incremental decisions, not sweeping reforms.• Gold-tax deliberations could stretch into the next government’s term if legal opinions remain split.• Disaster-relief and flood-mitigation budgets are likely to pass quickly because they carry minimal political risk.• Investors will scrutinise any move that might dent Thailand’s regulatory credibility — a key factor for the baht and the bond market.

For people living in Thailand, the practical takeaway is simple: day-to-day services will continue, but don’t expect major policy shifts until a new parliament sits. In the meantime, the line between necessary governance and political overreach will be policed, clause by clause, by a cautious Cabinet and an even more cautious Election Commission.