Thai finance ministry has no immediate plan to increase VAT to 10%

[webfact]

 

The Ministry of Finance has no policy to increase value-added tax from 7% to 10%, to generate more revenue to fund old age pensions, according to Pornchai Theeravet, director of the Fiscal Policy Office and spokesman for the ministry.

 

His remark is in response to a report that the National Economic and Social Development Council has proposed several measures to increase support for pensioners, including a proposed increase in the rate of VAT.

 

Pornchai explained that, if VAT is to be increased, a law must be promulgated but, for the time being, the finance ministry has no plan to increase the tax.

 

Full story: https://www.thaipbsworld.com/thai-finance-ministry-has-no-immediate-plan-to-increase-vat-to-10/

 

-- Thai PBS 2023-08-28

 

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[retarius]

With Prayut having maxed out borrowing and with interest rates on the rise, they will have few options. I would favour taxing the rich, heavily. 

[hotchilli]

2 hours ago, webfact said:

His remark is in response to a report that the National Economic and Social Development Council has proposed several measures to increase support for pensioners, including a proposed increase in the rate of VAT.

The usual give it out with one hand, and take it back with the other.

[Searat7]

Previous governments were afraid to increase from 7% to 8% so they are well behind where they need to be. With an annual increase of .25% they would be at 8% long ago.  10% is too high. 

[IamNoone88]

Increasing VAT would be an economic disaster. No mention of increasing productivity, efficiency or Gov't spending?

[Cake Monster]

6 minutes ago, IamNoone88 said:

Increasing VAT would be an economic disaster. No mention of increasing productivity, efficiency or Gov't spending?

All of the things you mention require a high degree of purpose to implement and sustain.

TIT

[bamnutsak]

Well technically VAT was raised to 10% previously. However it has been temporarily reduced to 7% (usually in two-year increments) through Royal decree.

 

The current reduction decree is set to expire 30 September 2023.

 

I think it is safe to assume that this 7% rate will be extended for another two years.

 

 

[ikke1959]

So no salaries possible for 600 THB a day but a raise of 3% VAT should not cause any problems....I think it is better that everybody start register at the place they are living in instead of the blue family book. And everybody has to fill in a tax form..In fact everybody has to pay tax with an income of an certain amount just as it is now, so it is easy if you don't earn enough money, you don't need to pay, but in the meantime the tax office can check your assets too and it is much easier to find people for corruption, drugs and human traffickers and criminals...Everybody happy except they of course

[Longwood50]

7 hours ago, webfact said:

, to generate more revenue to fund old age pensions

Rule #1 when trying to increase tax always come up with a good cause that the money will be used for. 

Rule #2 After tax is passed ignore the reason why the additional money has been raised. 

Rule #3  Propose even further tax increase using again the same reason as number #1 to justify the tax increase and repeat. Rule #2

It is the same in every country and every government.  

A private company or person looks to reduce their spending and expenses.  A government looks to expand its spending.