VAT remains unchanged at 7%, rumors online dismissed

[rooster59]

VAT remains unchanged at 7%, rumors online dismissed

Tanakorn Sangiam

 

BANGKOK, 25 May 2018 (NNT) –The government dismissed rumors online that they had decided to raise the VAT to eight percent, said Government Spokesman Lt Gen Sansern Kaewkamnerd. 

 

Regarding an article circulated in social media saying the government had planned to raise the VAT from seven to eight percent, the spokesman said that it was only an old article published in March 2017 and that it had already been verified as inaccurate. 

 

He dismissed another allegation that the government will increase the VAT to nine percent, plus a one-percent rise in local tax from 1 October 2018 and said that the Prime Minister has had no intention to impose any increased taxation and intended to maintain the VAT at seven percent as usual. 

 

The sustained freeze to an increased VAT was primarily meant to keep the general public from being negatively affected, the government spokesman said. 

 

According to the taxation law, the government has to collect the VAT by 10 percent. However, the government has managed to keep it unchanged, he said.

 

 

-- nnt 2018-05-26

[Srikcir]

On 5/26/2018 at 7:58 AM, rooster59 said:

The sustained freeze to an increased VAT was primarily meant to keep the general public from being negatively affected

Let's look at some selected headlines and statements about the economy made thus far in 2018:

Jan.

• Govt predicts good economy based on EEC development 
• the government's economic stimulus measures have also expanded domestic consumption and investment. 
• Minimum wage could be increased by more than Bt15 a day  
• New tax break to promote families having more children

• Japan firms in Thailand plan to raise wages by 4.4% on average this year

• Central bank assures of no looming deflation as inflation rate falling below projection 

• Investor confidence expected to rise sharply in March  

• Somkid: Baht appreciation is a direct consequence of economic improvement

• Ministry study finds wage increase has tiny impact on cost of goods  

• Thailand expects 12-pct investment growth in 2018

• Economic growth to continue this year

Feb.

• The University of the Thai Chamber of Commerce (UTCC) has indicated that Thailand's January Consumer Confidence Index (CCI) reached a 36-month high, thanks to an upbeat economic outlook in the country pointing to continuous growth. 
• Go-ahead for project aimed at tackling economic inequality

Mar.

• Thai exports in January rise to highest in 5 years

• Thai economy continues strong growth in fourth quarter 

• Cabinet okays Bt200,000 ‘Thai Niyom’ funds for every village

Apr.

• Thailand placed higher in Doing Business report this year
• The Fiscal Policy Office (FPO) of the Ministry of Finance has maintained this year’s expected economic expansion rate at 4.2%. 

May

• The country’s peak private-sector advisory grouping is sticking with its estimates for the economy to grow as much as 4.5 per cent alongside an increase in exports of up to 8 per cent for this year after economic gauges in the first quarter pointed to sustained momentum.  

• Economy surges: growth in all sectors

• Economy a patient recovered from pre-junta illness: Somkid

• Economy tipped to grow up to 4.7%

The overall picture (mostly from government/pro-government sources) appears to indicate that not only is the current economy sustainable but continuing to expand. If that's the case, a small (0.25-0.50%?) to moderate (1-1.5%?) increase in VAT should not negatively affect the Thai people. An increase can be used to help finance Prayut's populist programs (or whatever is politically correct), cover budget shortfalls caused by massive government corruption and pay down the large foreign debts incurred by the Prayut regime for infrastructure.

To reconcile what seems to be a discrepancy between not changing the VAT rate and a favorable economic outlook I suggest the following:

1. The government economic outlook is overstated and VAT rate shouldn't be increased.
2. The government economic outlook is correct but a VAT rate increase is not politically wise before the next election.
3. The government economic outlook is overstated and VAT rate should be decreased.

 

 

[StayinThailand2much]

On 5/27/2018 at 9:56 AM, Srikcir said:

The overall picture (mostly from government/pro-government sources) appears to indicate that not only is the current economy sustainable but continuing to expand. If that's the case, a small (0.25-0.50%?) to moderate (1-1.5%?) increase in VAT should not negatively affect the Thai people.

However, what you didn't consider, is, that the expanding economy may not necessarily benefit the large majority of Thais, but only a small minority. And as they say, VAT increases hit the poorest and low-income earners hardest, while the rich can easily write it off.

[KiwiKiwi]

Translation: We were going to increase it to 10%. We have to increase it. Then the survey results came in, and the courts will decide on the coup (and we already promised we would nix the Doi Suthep thing). Then someone 'up there' told the police to arrest one of the mainstay justifications for the coup in the first place.And we have a funny feeling people were telling porkies when they said they loved my songs.

 

And now we're feeling just a *touch* insecure, so we feel 'tis not the right time to hike the VAT rate by nearly 50%. Even if I am da boss; Superman.

 

Damn, we can't even give our mates a prezzie any more.