File photo for reference only

 

The caretaker Cabinet has announced the extension of the 7% value-added tax (VAT) rate for an additional year, according to caretaker Deputy Finance Minister Julapun Amornvivat. This decision aims to prevent the VAT from increasing to 10%, which was set to take effect on October 1. The extension is designed to ease the financial burden on consumers during the current economic downturn.

 

This move comes as the caretaker government seeks to act swiftly, fearing that delays under the upcoming Cabinet led by Prime Minister Anutin Charnvirakul might result in an automatic VAT hike. The extension period will begin on October 1 of this year and continue until September 30, 2026. Julapun emphasized the importance of this measure in addressing the economic challenges currently faced by the public.

 

Experts believe that maintaining the lower VAT rate will help stabilize consumer spending and alleviate some financial pressure on households during a time of economic uncertainty. The Deputy Finance Minister refrained from commenting on other economic concerns, such as the appreciation of the baht, suggesting that these issues will be handled by the incoming government.

 

Looking ahead, the caretaker government's VAT decision is expected to provide temporary relief while the new Cabinet lays out its long-term economic policies. Meanwhile, the caretaker Cabinet has also reviewed a report on the 10,000-baht handout project, acknowledging its positive impact on the economy and adherence to financial discipline. This project has garnered attention for its role in stimulating economic activity.

 

Key Takeaways

• The 7% VAT rate has been extended for a year, preventing an increase to 10%.
• Experts see this extension as crucial for easing current economic pressures.
• Future economic issues, like currency appreciation, will be addressed by the new Cabinet.

 

Related Stories:

• Thailand Eyes Tax Overhaul: Push for Increased Revenue
• Thailand Plans VAT Increase to Raise 600 Billion Baht

 

  Adapted by ASEAN Now from The Nation 2025-09-10

 

 

No other option

I have lived here in Thailand for 25 years and EVERY year I see this very same headline and report.

Good, economy not the best now.  Better wait till the Gold tied Baht is more favorable and tourist/economy is doing well.

7 minutes ago, petedk said:

I have lived here in Thailand for 25 years and EVERY year I see this very same headline and report.

Sure , but it is good news.

Just now, J Branche said:

Good, economy not the best now.  Better wait till the Gold tied Baht is more favorable and tourist/economy is doing well.

What if gold keeps going up ?

5 minutes ago, FlorC said:

What if gold keeps going up ?

Yeah, could be problem.  When importing from Thailand and goods are comparativly expensive to Vietnam, Cambodia, and Indonesia.  

 

Want more taxes spend the money to educate the younger gen, attract more business with lower wages, etc.

 

We know this will never happen as the old guard would lose some power and be exposed for all they do behind the scene.

13 minutes ago, petedk said:

I have lived here in Thailand for 25 years and EVERY year I see this very same headline and report.

 

Yes, since 1997.

 

 

Increasing the VAT is a relatively painless way to raise vast sums of money...And would really put end to much of the income tax talk craziness.....

 

That extra few baht in taxes could also be used to  vastly improve education in Thailand....

 

Most people would hardly notice a increase from 7 to 10 VAT.

 

 

A .25% increase every year for 4 years would be relatively painless; they could have been at 8% a couple of years ago. Now I wonder where they will find the funds needed.

2 hours ago, redwood1 said:

Increasing the VAT is a relatively painless way to raise vast sums of money...And would really put end to much of the income tax talk craziness.....

 

That extra few baht in taxes could also be used to  vastly improve education in Thailand....

 

Most people would hardly notice a increase from 7 to 10 VAT.

 

 

VAT is regressive and disproportionately affects the poor, punishing the very fringes of society. It's a lazy way of governments not facing the music and taxing as they should.

13 minutes ago, Karma80 said:

VAT is regressive and disproportionately affects the poor, punishing the very fringes of society. It's a lazy way of governments not facing the music and taxing as they should.

 

Plenty of countries have a VAT 20-25% So I guess they dont give a rats azz about their poor...

 

Thailands 7% VAT is very close to being the cheapest in the world 6th from last...

 

 

A 10% VAT in Thailand would bring in massive money but would hardly be noticed...

Every single cent is important to us to continue living our comfortable life in Thailand like I have for the previous 8 years but the government just wants more and more.Many of us are on a tight budget and don't have an endless supply of money.

8 hours ago, redwood1 said:

Increasing the VAT is a relatively painless way to raise vast sums of money...And would really put end to much of the income tax talk craziness.....

 

That extra few baht in taxes could also be used to  vastly improve education in Thailand....

 

Most people would hardly notice a increase from 7 to 10 VAT.

 

 

Instant 3% in the cost of living. A lot of people would notice that.

4 minutes ago, emptypockets said:

Instant 3% in the cost of living. A lot of people would notice that.

 

Try looking up the VAT in other countries ...

 

The VAT Will be raised...As sure as the sun comes up every day..

 

 

1 minute ago, redwood1 said:

 

Try looking up the VAT in other countries ...

 

 

Irrelevant 

Taxation is theft.

23 hours ago, redwood1 said:

Increasing the VAT is a relatively painless way to raise vast sums of money...And would really put end to much of the income tax talk craziness.....

 

That extra few baht in taxes could also be used to  vastly improve education in Thailand....

 

Most people would hardly notice a increase from 7 to 10 VAT.

On the minimum income to be here, yea, I think I'd notice it ... and a whole month's living expense for some folks.

 

  or ... 600 cans of Archa beer