Thailand to keep VAT unchanged at 7 percent until September 2019

 

New baht banknotes featuring Thailand's King Maha Vajiralongkorn are unveiled during a news conference at Bank of Thailand headquarters in Bangkok, Thailand March 8, 2018. REUTERS/Jorge Silva

 

BANGKOK (Reuters) - Thailand plans to keep the existing value-added tax rate unchanged at 7 percent until the end of the next fiscal year in September 2019 to support domestic activity, government officials said on Monday.

 

"It's not time to raise the VAT yet. Although the economy has recovered, the government does not want to put more burden on the people," spokesman Sansern Kaewkamnerd told reporters.

 

The finance ministry expects Southeast Asia's second-largest economy to expand 4.5 percent this year, after a 3.9 percent growth last year, the fastest pace in five years.

 

The VAT plan will be submitted to the cabinet for approval soon, Finance Minister Apisak Tantivorawong told reporters.

 

Despite high oil prices, the government has no plans to cut taxes on oil as oil prices are expected to fall later, he added.

 

-- © Copyright Reuters 2018-5-28

Is  this a good indicator of a possible time. 

I should add that Thailand imposes excise duty (another regressive tax) on far more goods at a far higher rates than other countries.

 

So don't be distracted by the left hand keeping VAT at a lower rate whilst the right hand increases excise duty.

 

Furthermore, the way both VAT and excise duty are calculated here tends to artificially inflate the actual rate over and above the headline rate (7% in the case of VAT).

 

 

27 minutes ago, Artisi said:

Is  this a good indicator of a possible time. 

Probably. It may change though...

So they will be in power until at least this time yet there is rumour of an election in February ummmm

14 hours ago, Briggsy said:

So don't be distracted by the left hand keeping VAT at a lower rate whilst the right hand increases excise duty.

Yes.

That may in part be why

16 hours ago, snoop1130 said:

the government does not want to put more burden on the people,"    (my bold)

The people are already burdened by four years of unbalanced economic priorities, ie., increasing income inequality. http://www.nationmultimedia.com/detail/Economy/30342302

3 hours ago, gandalf12 said:

So they will be in power until at least this time yet there is rumour of an election in February ummmm

Rumours are mostly unreliable...

Edited May 29, 20188 yr by Jonah Tenner

2 hours ago, Jonah Tenner said:

Rumours are mostly unreliable...

My point exactly