A proposal to increase Thailand’s value-added tax (VAT) to 10% aims to boost government revenue and enhance welfare benefits for senior citizens. The plan, reported on Saturday, February 14, 2026, suggests the higher rate could generate an additional 200–300 billion baht annually. The extra funds would help raise monthly pensions for elderly citizens from the current 600–1,000 baht to 3,000 baht.

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VAT currently accounts for around 30% of total government income, generating approximately 900 billion baht each year. Under the proposal, the additional revenue would be placed in a special savings account, allowing individuals to invest in government bonds to support increased welfare spending. The measure forms part of broader efforts to strengthen public finances amid rising fiscal pressures.

The sub-committee has also proposed expanding the tax base and tackling tax evasion. One key measure would introduce a 0.11% tax on stock sales, ending a more than 40-year exemption and potentially generating 16–18 billion baht annually. Another proposal under consideration is taxing gold transactions, which average around 65 billion baht per day, compared with approximately 42 billion baht in daily stock trades.

In addition, the committee recommends reinstating an exit tax for outbound travel. The proposed charge would be 1,000 baht per person for air travel and 500 baht for land or sea departures, potentially raising an extra 2.8 billion baht per year.

Warit Pipitpojjanakarn, secretary of the sub-committee on finance, raised concerns that public debt is projected to reach 69.78% of GDP by 2028, nearing the 70% ceiling. He noted that persistent budget deficits, particularly during the Covid-19 crisis, pushed the shortfall beyond the fiscal sustainability limit of 3% of GDP, with projections showing a rise to 4.4% by 2026. He also proposed structural tax reforms to promote savings and ease living costs.

Among these reforms is an increase in the child tax deduction from 30,000 baht to 500,000 baht per child. Plans include establishing savings funds for children and parents, with tax deductions of up to 100,000 baht per year, through a “Thai Junior Fund” and a “Parents Fund”. Dividend tax rules would also be adjusted for individuals earning more than 10 million baht annually, shifting them to a progressive rate.

The Nation reported that all the proposals remain under consideration, with further deliberations expected before any measures are implemented.

Cover picture courtesy of Nation

Key Takeaways

• Raising VAT to 10% could generate an additional 200–300 billion baht annually to fund higher elderly pensions.

• New taxes on stock sales, gold trading and outbound travel are proposed to expand revenue sources.

• Public debt is projected to reach 69.78% of GDP by 2028, nearing the 70% ceiling.

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Adapted by ASEAN Now Nation 15 Feb 2026

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Bringing the economy further down... More expensive.. thanks to the BJT. And complaining that the economy doesn't grow

IMO this intent is to be applauded. Totally.

A Pension of B600 per month is pathetic and imo it's inappropriate for us Falang to feel aggrieved by a small raise in Tax, (given many of us might be benefitting from Pensions of B30,000 per month and upwards).

Well done Thailand ! Might be a move in the right direction . . . .

12 minutes ago, TorquayFan said:

IMO this intent is to be applauded. Totally.

A Pension of B600 per month is pathetic and imo it's inappropriate for us Falang to feel aggrieved by a small raise in Tax, (given many of us might be benefitting from Pensions of B30,000 per month and upwards).

Well done Thailand ! Might be a move in the right direction . . . .

Please avoid ascribing one’s home economy here… newbies tend to do that 😋. I get it, but aside from abject corruption, Thais in general have not put into the system as have folk from more advanced economies which is why there is no real state pension for normies. Bunging quick taxes onto folk will do squat. A Logan’s Run-style system would prevent the aged from dragging everyone else into the red.

Great idea.

My only concern, and it is a big concern, where is this public revenue going to end up? How much will help those in need; and how much will go to corrupt politicians and government officials?

1 hour ago, TorquayFan said:

IMO this intent is to be applauded. Totally.

A Pension of B600 per month is pathetic and imo it's inappropriate for us Falang to feel aggrieved by a small raise in Tax, (given many of us might be benefitting from Pensions of B30,000 per month and upwards).

Well done Thailand ! Might be a move in the right direction . . . .

But you miss the point that all people in Thailand; very poor Thais, Thais and foreigners all pay VAT on many items of goods and services.

The very poor and poor Thais can't pay an extra 3% VAT when they are salready struggling to survive.

13 minutes ago, JimHuaHin said:

Great idea.

My only concern, and it is a big concern, where is this public revenue going to end up? How much will help those in need; and how much will go to corrupt politicians and government officials?

So Mr. Anutin let's see some new ideas and foolproof methods to stop corruption, collusion and bribery, including strong and serious punishment for the senior officials for their corrupt activities and for allowng the more junior offficials to engage in this activity.

Just now, scorecard said:

So Mr. Anutin let's see some new ideas and foolproof methods to stop corruption, collusion and bribery, including strong and serious punishment for the senior officials for their corrupt activities and for allowng the more junior offficials to engage in this activity.

Other countries can do it, so can Thailand if the PM and ministers are serious.

First step would be to remove and ban the 4 yrs in Aust. jail drug runner now serving as a deputy PM.

Sure. Health care and benefits for the elderly. That's where that money will go. Not to blatant corruption.

That's a good story and they should stick to it... Not that anyone believes it.

2 hours ago, TorquayFan said:

IMO this intent is to be applauded. Totally.

A Pension of B600 per month is pathetic and imo it's inappropriate for us Falang to feel aggrieved by a small raise in Tax, (given many of us might be benefitting from Pensions of B30,000 per month and upwards).

Well done Thailand ! Might be a move in the right direction . . . .

indeed a good move, but how much will the pension rise??? 2 % a month???and how much VAT more does the people pay from their pensions?? 25% for daily groceries???Sadly that you don't understand that the money is not spend for the elderly, but only to fill the gap in the budget of the Government , which exists by extreme costs.. They should start to cut that first, instead of getting the money away at the people who must contribute to the economy...And in a few months after it is implemented we will read that the inflation is not up..but prices are going up already by the expensive THB, the VAT, the profits of the shareholders and the extreme salaries of the CEO's....

1 hour ago, scorecard said:

But you miss the point that all people in Thailand; very poor Thais, Thais and foreigners all pay VAT on many items of goods and services.

Bingo. VAT is a highly regressive tax. It hurts the poor more than the rich.

In addition, the aim of the tax is to increase the wealth of the old at the cost of the working young, right when the population is aging and the young already are shrinking relative to the old.

5 hours ago, Georgealbert said:

The sub-committee has also proposed expanding the tax base and tackling tax evasion.

I guess no escape for us expats then.

5 hours ago, Georgealbert said:

allowing individuals to invest in government bonds

With barely any interest , but :

5 hours ago, Georgealbert said:

taxing gold transactions

taxing real savings.

5 hours ago, Georgealbert said:

Among these reforms is an increase in the child tax deduction from 30,000 baht to 500,000 baht per child.

Must be an error ?

30 to 50k, not 500k ?

What happened to the negative income tax they were yapping about for months?

Funny, no one mentioned taxes when they were campaigning....

5 hours ago, Georgealbert said:

Among these reforms is an increase in the child tax deduction from 30,000 baht to 500,000 baht per child.

Might need to make babies to survive financially...

Technically, the VAT isn't being raised, just no longer discount @ 7%, as the original VAT bill was passed @ 10%.

Amazing, y'all complaining about 3%, many won't even pay, since not living here, or some, not even visiting. 3 %, might drive me into bankruptcy.

Considering my tax burden in USA was anywhere from 15-50+% of my income. Depending how much I claimed.

You Euro folks, most of your tax burden starts at 25% & up

5 hours ago, Georgealbert said:

A proposal to increase Thailand’s value-added tax (VAT) to 10% aims to boost government revenue and enhance welfare benefits for senior citizens. The plan, reported on Saturday, February 14, 2026, suggests the higher rate could generate an additional 200–300 billion baht annually. The extra funds would help raise monthly pensions for elderly citizens from the current 600–1,000 baht to 3,000 baht.

Senior Citizens who require "welfare benefits" will be among those who get hammered by a 10% highly regressive VAT tax.

5 hours ago, Georgealbert said:

The plan, reported on Saturday, February 14, 2026, suggests the higher rate could generate an additional 200–300 billion baht annually. The extra funds would help raise monthly pensions for elderly citizens from the current 600–1,000 baht to 3,000 baht.

Let's have some fun with math. 300 Billion / 2000 Baht increase / 12 months = enough for 1.25 million elderly folks.

That doesn't sound like enough... Where do you figure they'll make it up?

19 minutes ago, redwood1 said:

Funny, no one mentioned taxes when they were campaigning....

People's Party wanted to "expand the tax base", as did Pheu Thai. I'm not sure about BJT.

12 minutes ago, KhunLA said:

Technically, the VAT isn't being raised, just no longer discount @ 7%, as the original VAT bill was passed @ 10%.

Amazing, y'all complaining about 3%, many won't even pay, since not living here, or some, not even visiting. 3 %, might drive me into bankruptcy.

Considering my tax burden in USA was anywhere from 15-50+% of my income. Depending how much I claimed.

You Euro folks, most of your tax burden starts at 25% & up

You have no clue about VAT.. you pay vat on everything... It is most of time included in the price and if not you will see it on the bill seperatly. Only tourists can vlaim thdir VAT back, but nobody else.. so every price is going up 3% in case you missed it....your electricity bill, water, everything will be more expensive. And VAT is totally something else than income tax. If you were a bit informed you should know that

Good my wife happily ensconced in the UK accumulates the 600 baht per month in her goverment savings account. She certainly doesn't need it but would be happy to get 3k if it's on offer. They managed to limit the handouts to folks with less than 1/2 million baht in their accounts so they can figure that one out now. So if the system is smart they should means test and limit overseas expats.

21 minutes ago, KhunLA said:

Technically, the VAT isn't being raised, just no longer discount @ 7%, as the original VAT bill was passed @ 10%.

Amazing, y'all complaining about 3%, many won't even pay, since not living here, or some, not even visiting. 3 %, might drive me into bankruptcy.

Considering my tax burden in USA was anywhere from 15-50+% of my income. Depending how much I claimed.

You Euro folks, most of your tax burden starts at 25% & up

But I am my wife have indexed linked pensions, free bus and tube passes, clean air, great pavements,safe roads, democracy,justice and the rule of law and the ability to bring down to heel the monarch's brother and interest on savings at 4.2%. Oh and great cheap wine and cheese. And we are back home in 48 hours - can't wait. Oh and truly speak truth to power without getting concrete boots in the Mekhong. Priceless.

4 minutes ago, ikke1959 said:

You have no clue about VAT.. you pay vat on everything... It is most of time included in the price and if not you will see it on the bill seperatly. Only tourists can vlaim thdir VAT back, but nobody else.. so every price is going up 3% in case you missed it....your electricity bill, water, everything will be more expensive.

You're assuming my ignorance, and you have no clue about my knowledge of TH, after living here 25+ yrs.

The VAT is the only tax most of us pay. Unless buying big ticket items, then maybe an excise tax, and or import tax. Vehicles, hit with a 20-25% excise tax, just on entry level, 'made in TH' JP badged crap.

RE taxes aren't worth mentioning, or any other 'hidden' taxes.

Don't really have an electric bill (solar), and 3% on that average 200 baht water bill won't be killing us. We spend about 30-40k THB a year. Half on food, and the rest on hotels, car ins. No petrol bill, only CS when O&A, as having BEV. No excise or import tax on that, BEV when purchased, I don't think, forget. Got discount car reg. tax, first year or 2, I think.

3% won't be breaking the bank. @ 40k a year, it will be 4k vs 2800 VAT paid. OMG, one less hotel room, or meal out. How will we survive.

Back in USA, $4000 USD, was the yearly RE tax on just one of my houses, for comparison.

This is what the Nation published 20 November 2025 regarding the proposed VAT increase

https://www.nationthailand.com/news/policy/40058500

Two increases over 4 years

1.5% in 2028

1.5% in 2030

1 hour ago, beautifulthailand99 said:

But I am my wife have indexed linked pensions, free bus and tube passes, clean air, great pavements,safe roads, democracy,justice and the rule of law and the ability to bring down to heel the monarch's brother and interest on savings at 4.2%. Oh and great cheap wine and cheese. And we are back home in 48 hours - can't wait. Oh and truly speak truth to power without getting concrete boots in the Mekhong. Priceless.

You forgot one of the most important especially as you get older a 100% free health service.

8 minutes ago, Bannoi said:

You forgot one of the most important especially as you get older a 100% free health service.

Crikes it maybe creaking but it's still brillaint and free prescriptions and eye tests as well. Parks , national parks,museums free to all and best of all urban foxes (my avatar) that I love and cherish.

1 hour ago, impulse said:

Let's have some fun with math. 300 Billion / 2000 Baht increase / 12 months = enough for 1.25 million elderly folks.

That doesn't sound like enough... Where do you figure they'll make it up?

I think you missed a couple of zeros.

300,000,000,000 divided by 2,000 divided again by 12 months = 12,500,000.

So, 12.5 million elderly folks.

1 hour ago, KhunLA said:

You're assuming my ignorance, and you have no clue about my knowledge of TH, after living here 25+ yrs.

The VAT is the only tax most of us pay. Unless buying big ticket items, then maybe an excise tax, and or import tax. Vehicles, hit with a 20-25% excise tax, just on entry level, 'made in TH' JP badged crap.

RE taxes aren't worth mentioning, or any other 'hidden' taxes.

Don't really have an electric bill (solar), and 3% on that average 200 baht water bill won't be killing us. We spend about 30-40k THB a year. Half on food, and the rest on hotels, car ins. No petrol bill, only CS when O&A, as having BEV. No excise or import tax on that, BEV when purchased, I don't think, forget. Got discount car reg. tax, first year or 2, I think.

3% won't be breaking the bank. @ 40k a year, it will be 4k vs 2800 VAT paid. OMG, one less hotel room, or meal out. How will we survive.

Back in USA, $4000 USD, was the yearly RE tax on just one of my houses, for comparison.

Big spender with 30/40k THB a year......

1 minute ago, ikke1959 said:

Big spender with 30/40k THB a year......

Smart spenders, investors, and eliminated most monthly bills with investments with ROI. Solar has almost paid for itself, sort of, in 3.5 yrs. BEV eliminated petrol bill.

Healthy whole food eating, avoids getting sick and need for healthcare or insurance for. Non smoker, non drinker of alcohol. No kids at home, no school payment, no rent or mortgage or car note, nor electric bill. Collect water & grow some food.

Have plenty of money, just don't need to spend it, and don't go without anything we need or want. Nice place to be.

6 minutes ago, KhunLA said:

Smart spenders, investors, and eliminated most monthly bills with investments with ROI. Solar has almost paid for itself, sort of, in 3.5 yrs. BEV eliminated petrol bill.

Healthy whole food eating, avoids getting sick and need for healthcare or insurance for. Non smoker, non drinker of alcohol. No kids at home, no school payment, no rent or mortgage or car note, nor electric bill. Collect water & grow some food.

Have plenty of money, just don't need to spend it, and don't go without anything we need or want. Nice place to be.

Smart move.. no healthcare or insurance... I hope you and or your partner will never get in the hospital... It will cost you dearly, but that is your choice...rest same for me occasional drinker of alcohol.. Christmas/New Year, no smoker, no kids at all, no rent, mortgage, but enjoying life by eating outdoors every day lunch, cooking own food, some holidays during the year in and out Thailand, but with a healthcare insurance... and house insurance, car insurance, but I still spend at least 25k a month..... that is 300k a year. And we live a very modest normal life. And I pay my Thai taxes too, so my contribution to the raised VAT will be significant more

11 minutes ago, ikke1959 said:

Smart move.. no healthcare or insurance... I hope you and or your partner will never get in the hospital... It will cost you dearly,

Not really, have an oops fund for that, and healthcare is inexpensive here, far lass than insurance would have been for me, the past 25+ years. Only spending 40k a year, means we save more than that, as I'm on a retirement visa. She's Thai, so Thai's universal healthcare covers her needs.