Will Vat Revert Back To 10% In October 2008 ?

[torrenova]

Just doing some financial forcasts and wondering if there has been any announcement as to whether VAT will revert back to 10% from 7% on October 1st 2008 after its reduction in 1999 ?

I know it is only 3% but ?

and you know what proportion of the Thai national income comes from VAT ? - a lot !

Anyone up to speed on this ?

[cclub75]

Just doing some financial forcasts and wondering if there has been any announcement as to whether VAT will revert back to 10% from 7% on October 1st 2008 after its reduction in 1999 ?

I know it is only 3% but ?

and you know what proportion of the Thai national income comes from VAT ? - a lot !

40 % (look here).

As for the 10 % rate, well they are talking about it. Since a long time. It's like the Loch Ness Monster.

On one hand, they dream about it (more money to spend, let's party), on the other hand they are so scared about inflation...

3 points more would be of course be another blow to poor people (after hikes in some goods, gasoline, transports etc.).

I bet they will postpone. Once again.

[Irene]

Recently, the Director-General of the Revenue indicated that the VAT of 7% should be increased since it is one of the five countries in the world that has been using this lowest rate. However, the decision-maker is with the coming Finance Minister of the new government and also depends on the economic situation by the first half of next year.

The rise is possible but certainly not to the rate of 10% because of the Thai nature in not increasing anything by leap and bound. The idea could be just to get people to be used to the rise, perhaps by 0.5%.

[cclub75]

Recently, the Director-General of the Revenue indicated that the VAT of 7% should be increased since it is one of the five countries in the world that has been using this lowest rate.

As usual, the typical non sense coming from a thai "official". And nobody of course challenge what is talking about (authority principle).

But the point is, Director General's rethoric is false ("we have to... because only 5 countries in the world do what we do...".

Some states in the US has 0 sale tax, or low rate. And low rate Jersey, Panama, Singapore , Algeria (7.17), Canada (7), Japan (5), Liechtenstein (7.6), Taiwan (5), Dominican Republic (6), Switzerland (6.5)

Even in France, we have a reduced rate of 5 % for some goods (press, food etc.)

It would be less "polite" for the Director General to say : we need badly the money for our grand projects (and personal projects), shut your mouth and pay.