Picture courtesy: Thai Rath

 

Amidst rising concerns over potential tax changes in Thailand, the opposition People’s Party is pressing the government for clarity. With tax reform proposals currently in the study phase, speculation about a possible value-added tax (VAT) increase has sent ripples through the public and political spheres alike.

 

During the latest House session, People’s Party MP Sirikanya Tansakun called on the government to explain remarks made by Finance Minister Pichai Chunhavajira regarding the restructuring of the national tax system. While the minister has suggested these are merely ideas under consideration, the implications have brought ongoing public unease.

 

Ms Sirikanya expressed a cautious welcome towards tax reforms aiming at revenue enhancement but emphasised the necessity of transparent and substantiated government communications. Based on her interpretation of Mr Pichai's statements, the proposed reforms might set corporate tax at 15%, reduce personal income taxes to a flat 15%, and increase VAT from its longstanding rate of 7% to 15%.

 

These potential changes could lead to a significant shortfall in corporate tax revenue, around 190 billion Thai Baht, Ms Sirikanya noted. Moreover, individuals earning less than 300,000 Thai Baht monthly could face heightened income tax rates, calling into question the efficacy and equity of such reforms.

"I remain perplexed as to how this strategy will fulfil its promise of increasing government revenue with minimal public impact," Ms Sirikanya stated. "If unaware of this potential revenue dip, why consider elevating VAT to compensate?"

 

Mr Pichai's suggestion of elevating VAT — a rate unchanged for 30 years — to as high as 15% was swiftly countered by Prime Minister Paetongtarn Shinawatra. Furthermore, the idea of a standard 15% personal income tax rate is positioned to attract international expertise, rather than replace the current progressive system.

 

Ms Sirikanya further speculated that lowering corporate taxes might align with global norms set by the Organisation for Economic Co-operation and Development (OECD), which advocates a minimum 15% corporate tax for multinationals with sales exceeding 750 million euros.

 

Deputy Finance Minister Julapun Amornvivat acknowledged the need for greater tax revenue to underpin universal welfare initiatives. With tax revenues contributing merely 14% to Thailand's GDP, against a global average of 18%, the ministry is actively studying new revenue streams, reported Bangkok Post.

 

-- 2024-12-13

 

 

Nobody knows anything, even the MPs

They are right to question it. Governments should leave tax well alone, unless it’s a reduction for the little man. Stop meddling for personal agendas and causing strife to ordinary people. 

5 minutes ago, daveAustin said:

They are right to question it. Governments should leave tax well alone, unless it’s a reduction for the little man. Stop meddling for personal agendas and causing strife to ordinary people. 

 

Ok, they want the extra money alright.

The twisted narrative that the OECD setting a minimum tax rate is never supposed to justify tax cuts - it's there to encourage increases where large multi nationals are paying nothing. Yet here we are - Thailand considering corporation tax reductions but public VAT increases.

Couldn't make it up.

 

4 hours ago, daveAustin said:

Governments should leave tax well alone

Who do you think should determine, impose and collect taxes then if not the Governments?

19 minutes ago, scottiejohn said:

Who do you think should determine, impose and collect taxes then if not the Governments?

 

Well it seems Tony has already determined the tax rate he will be paying on his ill gotten billions.......And the tax rate is 0.0 % .

I can almost hear the tanks rolling down the streets...

 

If this shower of an un-elected government goes through with any of it's ludicrous proposals, then it is only a matter of time before the streets are a war zone once again.

If they want more tax. start with abolish the blue familybook, and let everybody be registered where they live. Send them a tax form with they have to fill in with their job, wage/salary, bankaccounts, and other assets. Many people don't need to pay taxes probably, but there are  also a lot of people who have to pay but never fill in  their taxpapers...The Government has no clue who is living where is doing what and earning how much or what they posses.

 

They don't need to increase the VAT as all people are affected and with no raise of daily wages to a normal standard of 500 THB(which is still not so much) a lot of people will get higher debts and problems.   A 10k wallet will not help 

10 minutes ago, BarBoy said:

I can almost hear the tanks rolling down the streets...

 

If this shower of an un-elected government goes through with any of it's ludicrous proposals, then it is only a matter of time before the streets are a war zone once again.

Rubbish, people will not be rioting in the streets over  VAT increases,  

31 minutes ago, Bday Prang said:

Rubbish, people will not be rioting in the streets over  VAT increases,  

That is not their only proposal though, is it?

 

I know many hardcore yellow shirts high up the chain in business and they are already sick to the back teeth of Mr. Sick Note and the PT party in general.

1 hour ago, scottiejohn said:

Who do you think should determine, impose and collect taxes then if not the Governments?

The people, and if you are going to say Governments represent the  people............