Tax reforms to take more time than expected but surprise on the way

By The Nation

 

 

The Ministry of Finance has indicated that plans to reform the income tax structure might not be completed by February as earlier scheduled but says a tax measure will be announced early in 2020 as a New Year’s gift to Thais. 

 

The ministry’s permanent secretary Prasong Poontaneat said that tax reform committee will meet again on December 24 to report the progress of the tax structure study and that although some tax measures might be approved, the 10-per-cent cut in personal income tax will be delayed.

 

“We will be announcing a tax measure after the festive period but we will not reveal it now. Meanwhile, the 10-per-cent cut in personal income tax might be applied later in 2020 as it is related to financial stability. The tax reforms will remove the flaws from the present system and be fairer to all,” Prasong said.

 

Ekniti Nitithanprapas, director-general of the Revenue Department, said that the Fiscal Policy Office will be mainly responsible for the tax structure reform.

 

The Ministry is also aiming to collect 7-per-cent value-added tax on goods ordered online from other counties and also cancel the tax-free status on imported products priced below Bt1,500 so as to be fair to manufacturers who produce similar goods and who are charged 7-per-cent VAT.

 

“Thais now prefer to order online especially from China and US and the value of this market is worth more than Bt1 billion. Some avoid the tariff by showing the prices of goods as below Bt1,500 but the real value is higher than that, ” said Ekniti.

 

Source: https://www.nationthailand.com/business/30379486?utm_source=homepage&utm_medium=internal_referral

 

-- © Copyright The Nation Thailand 2019-12-17

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If it were possible to order stuff online that was made in Thailand, I would. But it appears all the stuff I order is made in China.

15 hours ago, webfact said:

cancel the tax-free status on imported products priced below Bt1,500 so as to be fair to manufacturers who produce similar goods and who are charged 7-per-cent VAT.

That cancellation may be limited by law as certain imports are exempt from VAT

https://www.rd.go.th/publish/6043.0.html

that would require amending laws and by the ASEAN Free Trade Agreement for certain products and services. Adding VAT in the latter case might be viewed by other ASEAN exporters as a disguised import tariff to which they may either retaliate with higher tariffs on Thai imports and/or file a complaint with the WTO or the relevant FTA authority.

So they are taking more money from the less fortunate by taxing small items.  Keep pushing ????

They gonna tax everything that moves.