VAT to stay at 7% for another year

[snoop1130]

VAT to stay at 7% for another year

By The Nation

 

Finance Minister Predee Daochai

 

The Cabinet on Tuesday (August 25) resolved to maintain value-added-tax (VAT) at the current rate of 7 per cent for another year as proposed by the Finance Ministry.

 

Finance Minister Predee Daochai said the 7 per cent rate covers all products and services subject to VAT from October 1, 2020 to September 30, 2021.

 

He said rate is being maintained to help ease the burden on people until the economy can be revived.

 

Source: https://www.nationthailand.com/business/30393501

 

-- © Copyright The Nation Thailand 2020-08-25

 

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[Srikcir]

Rate should have dropped to 5% years ago as part of Prayut's first economic stimulus efforts. But the stock market seemed to take higher attention. Holding the rate at 7% is just maintaining the status quo of income inequality.

[hotandsticky]

3 minutes ago, Srikcir said:

Rate should have dropped to 5% years ago as part of Prayut's first economic stimulus efforts. But the stock market seemed to take higher attention. Holding the rate at 7% is just maintaining the status quo of income inequality.

 

 

Yet many predicted (that due to CV19) the government would increase to the previously announced 10%.

 

 

I am sure that you will cheer the continuing suppression of the VAT rate in current economic conditions. Your 5% reference is misleading:-

 

Value-added tax (VAT)

The standard rate of VAT is 10%, but the rate is currently reduced to 7% until 30 September 2020 (unless further extended by the government). VAT is levied on the sale of goods and the provision of services. Exports are zero-rated, while a number of goods and services are exempt (e.g. basic groceries, education, healthcare, interest, leasing of immovable property, sale of real estate).

Edited August 26, 2020 by hotandsticky