A proposal to increase Thailand’s value-added tax (VAT) to 10% aims to boost government revenue and enhance welfare benefits for senior citizens. The plan, reported on Saturday, February 14, 2026, suggests the higher rate could generate an additional 200–300 billion baht annually. The extra funds would help raise monthly pensions for elderly citizens from the current 600–1,000 baht to 3,000 baht.
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VAT currently accounts for around 30% of total government income, generating approximately 900 billion baht each year. Under the proposal, the additional revenue would be placed in a special savings account, allowing individuals to invest in government bonds to support increased welfare spending. The measure forms part of broader efforts to strengthen public finances amid rising fiscal pressures.
The sub-committee has also proposed expanding the tax base and tackling tax evasion. One key measure would introduce a 0.11% tax on stock sales, ending a more than 40-year exemption and potentially generating 16–18 billion baht annually. Another proposal under consideration is taxing gold transactions, which average around 65 billion baht per day, compared with approximately 42 billion baht in daily stock trades.
In addition, the committee recommends reinstating an exit tax for outbound travel. The proposed charge would be 1,000 baht per person for air travel and 500 baht for land or sea departures, potentially raising an extra 2.8 billion baht per year.
Warit Pipitpojjanakarn, secretary of the sub-committee on finance, raised concerns that public debt is projected to reach 69.78% of GDP by 2028, nearing the 70% ceiling. He noted that persistent budget deficits, particularly during the Covid-19 crisis, pushed the shortfall beyond the fiscal sustainability limit of 3% of GDP, with projections showing a rise to 4.4% by 2026. He also proposed structural tax reforms to promote savings and ease living costs.
Among these reforms is an increase in the child tax deduction from 30,000 baht to 500,000 baht per child. Plans include establishing savings funds for children and parents, with tax deductions of up to 100,000 baht per year, through a “Thai Junior Fund” and a “Parents Fund”. Dividend tax rules would also be adjusted for individuals earning more than 10 million baht annually, shifting them to a progressive rate.
The Nation reported that all the proposals remain under consideration, with further deliberations expected before any measures are implemented.
Cover picture courtesy of Nation
Key Takeaways
• Raising VAT to 10% could generate an additional 200–300 billion baht annually to fund higher elderly pensions.
• New taxes on stock sales, gold trading and outbound travel are proposed to expand revenue sources.
• Public debt is projected to reach 69.78% of GDP by 2028, nearing the 70% ceiling.
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Adapted by ASEAN Now Nation 15 Feb 2026
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