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VAT Rise to 10% Proposed to Fund Elderly Benefits

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35 minutes ago, chickenslegs said:

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.

I did. My bad. I need to quit using the Windows calculator. It works fine, but my typing by mouse stinks. And I do much better with RPN.

Still, I think that they are over promising, and I'd be very surprised to see the elderly benefit increase that much, once the normal vig is siphoned off.

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  • TorquayFan
    TorquayFan

    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 ben

  • JimHuaHin
    JimHuaHin

    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 offic

  • daveAustin
    daveAustin

    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 eco

Posted Images

5 hours ago, Gaccha said:

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

VAT/Sales tax is the only way to efficiently tax the wealthy and in absolute numbers they spend then contribute way more than poorer individuals.

Actually the smart move would be implementing exemption/low rates to personal income tax (benefit the middle class) and set progressive VAT rates: 0/low rates for necessary expense to higher rates for luxury goods and services.

7 hours ago, beautifulthailand99 said:

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.

Nothing is free, someone pays for it.

8 hours ago, beautifulthailand99 said:

Parks , national parks,museums free to all and best of all urban foxes (my avatar) that I love and cherish.

My GF came to visit me in the UK for the first time in summer 2023. Awakening early and looking out of the bedroom window she was shocked to see "maa baa" in the communal gardens. Have to say, not only foxes but an abundance of squirrels too. Amazingly we have the parakeets that screech through the London skies (2 even landed on our open window and she snapped the picture below). Horses in the next field also. All this, just 5 minutes from Heathrow Airport.

On topic: VAT in the UK is 20% so 10% in Thailand, for us expats is cheap. Sad for the Thai people though.

1691651341311.jpg

13 hours ago, FlorC said:

I guess no escape for us expats then.

With barely any interest , but :

taxing real savings.

Must be an error ?

30 to 50k, not 500k ?

13 hours ago

18 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.

Escape what?

What were you expecting / what makes you not satisfied?

19 hours ago, ikke1959 said:

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

The economy is growing and it is time that all people pay a bit of tax.

17 hours ago, daveAustin said:

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.

VAT is paid by most people.

16 hours 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?

Read the OP, increase old age pension.

16 hours 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.

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

The pensioners can if their allowance will be 5 fold.

14 hours ago, connda said:

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

Math not your strongest point is it?

Income goes up 300- 500 %, vat goes up from 7 to 10%

12 hours ago, KhunLA said:

Healthy whole food eating, avoids getting sick and need for healthcare or insurance for.

That is just a plain stupid argument.

10 hours ago, Yumthai said:

Actually the smart move would be implementing exemption/low rates to personal income tax (benefit the middle class)

Is implemented for ages.

The VAT was set at 10% when it was introduced. Over the years, it was "temporarily" reduced and was supposed toreturn to 10%. All that the government is doing is respecting the conditions that allowed for the "temporary" reduction to 7%.

19 hours ago, ikke1959 said:

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

The VAT adjustment will not impact the economy as you claim. If the funds are used to increase old age pensions it is a redistribution of wealth, from the wealthy to the poor and the poor will be spending it on goods and services in Thailand, thereby doing the opposite of what you claim.

17 hours 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.

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

Pity that you did not read what the VAT applies to. VAT does not apply to basic groceries such as fruits, eggs, vegetables, fish and unprocessed meat, educational services, textbooks, healthcare services, rental properties, the sale of real estate, services provided by Thai governmental organisations, land transportation, libraries, museums, medical and auditing services, and religious and charitable services. This is what the "poor" spend their money on. so, do tell us how the poor Thais "struggling to survive" are going to be hurt.

16 hours ago, 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.

VAT and GST are the most effective means of addressing the black market of untaxed goods and services. It ensures that everyone pays something

15 hours ago, Gaccha said:

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.

Pity that you did not read the original c claims that made the claim of the tax being regressive. Had you done so, you would have seen that the claim (which was theoretical) was conditional on the VAT being applied without adjustment. You have ignored two critical characteristics of the claim;

  1. The VAT is ADJUSTED to address the potential for a negative impact. Many goods and services are VAT exempt. Critical items like food, medical care, shelter and education are not subject to VAT. This is what much of the poor spend their income on.

  2. The impact of an across the board unadjusted rate was in itself not significant. For the vast majority of taxpayers, it was deemed a proportional change with neither a positive, nor negative impact. it was slightly regressive for the lowest tier of tax payers, people who typically paid little or no tax, yet were heavy users of public services. However, as stated above, the adjustment addresses this potential impact.

14 hours ago, connda said:

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

How so? How are they going to get hammered?

Medical Care and prescribed medicines? No, because it is VAT exempt.

Rental housing? No because it is VAT exempt.

Food? No, because almost all of it is VAT exempt.

Government assistance? No, because it is VAT exempt.

Land transportation? No, because it is VAT exempt.

Religious activity? No, because it is VAT exempt.

Social club activities? No, because it is VAT exempt.

How is VAT in Thailand regressive? There is no evidence to support your claim. The claim of VAT being regressive was a theoretical academic conclusion and it was conditional on adjustments not being made. Thailand has made the necessary adjustments. There is no "highly regressive" impact in Thailand.

6 hours ago, FritsSikkink said:

That is just a plain stupid argument.

Didn't think anyone was really that ignorant. Feed you body good nutrients to boost your immune system, and it keeps you healthier.

Don't think any intelligent person would dispute that eating whole foods is best for a healthy body vs over & ultra processed foods, and high added sugar intake. All nutritionist would agree.

On topic, added taxes to some unhealthy foods as a deterrent from eating to stay healthy. Taxes on high sugar content food, tobacco product, alcohol beverages, as detrimental to your health.

No problem. The economy will crash a bit more and no more foreigner will want to spend in Thailand, where the prices are already far to much even sometimes compared to western nations.

Good way to drive all of the expats out of the country who haven't already left because of the crappy exchange rates.

6 hours ago, Patong2021 said:

The VAT was set at 10% when it was introduced. Over the years, it was "temporarily" reduced and was supposed toreturn to 10%. All that the government is doing is respecting the conditions that allowed for the "temporary" reduction to 7%.

The VAT adjustment will not impact the economy as you claim. If the funds are used to increase old age pensions it is a redistribution of wealth, from the wealthy to the poor and the poor will be spending it on goods and services in Thailand, thereby doing the opposite of what you claim.

Pity that you did not read what the VAT applies to. VAT does not apply to basic groceries such as fruits, eggs, vegetables, fish and unprocessed meat, educational services, textbooks, healthcare services, rental properties, the sale of real estate, services provided by Thai governmental organisations, land transportation, libraries, museums, medical and auditing services, and religious and charitable services. This is what the "poor" spend their money on. so, do tell us how the poor Thais "struggling to survive" are going to be hurt.

VAT and GST are the most effective means of addressing the black market of untaxed goods and services. It ensures that everyone pays something

Pity that you did not read the original c claims that made the claim of the tax being regressive. Had you done so, you would have seen that the claim (which was theoretical) was conditional on the VAT being applied without adjustment. You have ignored two critical characteristics of the claim;

  1. The VAT is ADJUSTED to address the potential for a negative impact. Many goods and services are VAT exempt. Critical items like food, medical care, shelter and education are not subject to VAT. This is what much of the poor spend their income on.

  2. The impact of an across the board unadjusted rate was in itself not significant. For the vast majority of taxpayers, it was deemed a proportional change with neither a positive, nor negative impact. it was slightly regressive for the lowest tier of tax payers, people who typically paid little or no tax, yet were heavy users of public services. However, as stated above, the adjustment addresses this potential impact.

How so? How are they going to get hammered?

Medical Care and prescribed medicines? No, because it is VAT exempt.

Rental housing? No because it is VAT exempt.

Food? No, because almost all of it is VAT exempt.

Government assistance? No, because it is VAT exempt.

Land transportation? No, because it is VAT exempt.

Religious activity? No, because it is VAT exempt.

Social club activities? No, because it is VAT exempt.

How is VAT in Thailand regressive? There is no evidence to support your claim. The claim of VAT being regressive was a theoretical academic conclusion and it was conditional on adjustments not being made. Thailand has made the necessary adjustments. There is no "highly regressive" impact in Thailand.

Will there be vat on bar girls ?

It's an absolute necessity to increase the State revenues. The proposals all make sense but consider this:

While 11-12 Million file for income tax, only about 4 Million or 6% of the population do pay income tax.

-> more income tax should be generated.

The HUGE amount of gray money. Most small en medium business companies do not pay VAT or any other tax. This is most own businesses, bars, restaurants, shops, stalls, pushcarts, smaller factories, repair shops etc... do not pay 1 baht Tax. Only about 10% are registered in the VAT system, claiming theycmake less than 1.8 million revenue a year. Imagine this coming under taxation...

Thailand would need a complete overhaul of the taxation system to be fair and equitable.

And of course the waste at government level through useless spending, overpaying and systematic corruption should be addressed.

Imagine Thailand having en efficient government and a fair and efficient taxation system with proper collection... The country could be so much more advanced!!!

On 2/15/2026 at 8:38 AM, 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.

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

That is not correct. Only about 10% of businesses are registered in the VAT system. About 90% of small businesses claim making less than 1.8 million revenue thus are not subject to register and do not pay VAT.

10 minutes ago, Travel Dude said:

It's an absolute necessity to increase the State revenues. The proposals all make sense but consider this:

While 11-12 Million file for income tax, only about 4 Million or 6% of the population do pay income tax.

-> more income tax should be generated.

The HUGE amount of gray money. Most small en medium business companies do not pay VAT or any other tax. This is most own businesses, bars, restaurants, shops, stalls, pushcarts, smaller factories, repair shops etc... do not pay 1 baht Tax. Only about 10% are registered in the VAT system, claiming theycmake less than 1.8 million revenue a year. Imagine this coming under taxation...

Thailand would need a complete overhaul of the taxation system to be fair and equitable.

And of course the waste at government level through useless spending, overpaying and systematic corruption should be addressed.

Imagine Thailand having en efficient government and a fair and efficient taxation system with proper collection... The country could be so much more advanced!!!

Imagine .....dragons !!

23 hours ago, ikke1959 said:

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....

Did you read the article? Old people's state benefits will go up from thb 600 to thb 3000. That is 500%, not 2%. That would be very welcome.

1 hour ago, KhunLA said:

Didn't think anyone was really that ignorant. Feed you body good nutrients to boost your immune system, and it keeps you healthier.

Don't think any intelligent person would dispute that eating whole foods is best for a healthy body vs over & ultra processed foods, and high added sugar intake. All nutritionist would agree.

Yes, but that doesn't mean you won't get sick or get an accident, so you don't need healthcare.

22 hours ago, connda said:

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

Nonsense. Senior citizen state pension would go from 600 to 3000 a month.

Any business making less than 1.8 million revenue per year does not pay VAT, and that is about 90% of all small and medium businesses.

22 hours 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. And VAT is totally something else than income tax. If you were a bit informed you should know that

You seem to know nothing about the Thai Taxation. Only 10% of businesses in Thailand are registered in the VAT system.

And for additional info, only 6% of the population in Thailand pays income tax.

7 minutes ago, FritsSikkink said:

Yes, but that doesn't mean you won't get sick or get an accident, so you don't need healthcare.

I guess if you are prone to getting sick, from poor eating lifestyle, and or prone to accidents, then investing in healthcare insurance may be beneficial to you. For me, it's never been a problem.

Along with ignoring the doom & gloom, fear mongering of something will happen sooner or later, so be prepared, and buy our insurance today, before it happens.

Common sense prevails with me, and living really is too simple. Live in fear if you want. Not for me.

Especially in TH (on topic, as always), and the 1.5% increments, twice, over the next 4 yrs, so those needing a few more baht, can be happier, is fine with me. They don't need insurance as taxes provide their healthcare.

If you can't afford 3%, stay home to live or don't visit TH. You probably can't afford to leave your country anyway.

I'm a guest here, TH, so plan accordingly, and eating healthy is part of that, to avoid getting sick. Eased up on thrill seeking activities, since I don't bounce as well, as years past, and careful around house & everyday living, to avoid accidents. All common sense.

Forced to have insurance on the vehicles, not by choice, so covered in the very unlikely event of having a serious accident while on the roads. 25+ yrs here, and nobody tried to hurt me yet on the highways. Thanks to my defensive driving skills, and their courteous and safe driving habits.

We are our worse enemies, realize that, and don't put yourself in harm's way. Oh yea, eating healthy & common sense works for us.

Those that can't, won't subscribe to that, buy that insurance.

Pay your taxes, VAT, with a smile, stop crying about helping those that need a hand.

10 minutes ago, KhunLA said:

I guess if you are prone to getting sick, from poor eating lifestyle, and or prone to accidents, then investing in healthcare insurance may be beneficial to you. For me, it's never been a problem.

Along with ignoring the doom & gloom, fear mongering of something will happen sooner or later, so be prepared, and buy our insurance today, before it happens.

Common sense prevails with me, and living really is too simple. Live in fear if you want. Not for me.

I don't live in fear and got health insurance for less than 500 thb per month as I used to work here.

4 minutes ago, FritsSikkink said:

I don't live in fear and got health insurance for less than 500 thb per month as I used to work here.

So in reality, you didn't pay for healthcare either, and was provided by your employer, and Thai's social services system, and you are simply supplementing the cost to keep it, after employment ended.

So a bit hypocritical, suggesting I should do, what you, yourself didn't do, unless you also had, have a private healthcare insurance policy to fill in any gaps of the provided one. That rich of you.

And you're on a thread, hopefully not complaining about paying additional taxes, that fund your healthcare. Can't say I read all your replies, so don't know.

6 minutes ago, Travel Dude said:

You seem to know nothing about the Thai Taxation. Only 10% of businesses in Thailand are registered in the VAT system.

And for additional info, only 6% of the population in Thailand pays income tax.

Thank you for the education. I did not realize how many people in Thailand do not pay income taxe and wanted to know more, so I searched. A large portion of the population (more than 60%) does not file taxes, often due to working in the agricultural sector or earning below the net income threshold of 150,000 THB annual income. I looked some more and was surprised to discover that Thailand's tax revenues are driven by commercial and non essential good taxes, which are less of a burden on the poor. Thailand's VAT burden is relatively low. In OECD countries (e.g. Turkiye, France, Columbia, Mexico, Germany et al) VAT revenues were approximately 7% of GDP in 2022. In Thailand, 2023, they were only 3.9%.

Thai corporate tax revenues contribute to approx. 25% of total tax revenues. That's about 2X the OECD average of 12-13%. Although it isn't that far off compared to Australia - 21% or France 36%. It is however in line with regional neighbors. Thailand heavily taxes luxury items like imported high value vehicles, and furniture. Poor people are not buying Ferraris or bespoke leather divans.

My takeaway, is that the Thai tax system is actually skewed to favour people with low income, particularly rural people and the urban poor. I don't think we give the Thai people enough credit for having a tax system that has actually helped the lower socio economic demographic as the country developed and became wealthier. Yes, it has deficiencies and faults, but it is far fairer to the poor than the tax methodology of many well developed nations.

3 minutes ago, KhunLA said:

So in reality, you didn't pay for healthcare either, and was provided by your employer, and Thai's social services system, and you are simply supplementing the cost to keep it, after employment ended.

So a bit hypocritical, suggesting I should do, what you, yourself didn't do, unless you also had, have a private healthcare insurance policy to fill in any gaps of the provided one. That rich of you.

And you're on a thread, hopefully not complaining about paying additional taxes, that fund your healthcare. Can't say I read all your replies, so don't know.

If you work, they deduct money for Social Security, so you DO pay.

I gladly pay more VAT to support the elderly.

If you are too lazy to read the post, don't assume things.

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