No Vat Rise

[george]

No VAT rise

BANGKOK: -- The Finance Ministry has submitted a package of tax-cutting measures to stem inflation. The centrepiece is another two-year freeze on the 7 per cent Value Added Tax, scheduled to rise later this year.

The package also recommends increasing the income tax waiver from 100,000 to 150,000 baht. That would make workers earning less than 20,000 per month exempt from paying income taxes. The current threshold is 16,000 baht per month.

Economy ministry sources said the package would be presented to the public as an economic stimulus measure.

It includes the three-year moratorium on collection of the first 100,000 baht of farmers' debts. This was a main election campaign promise of the People Power party.

The tax package would also include cutting cooperate tax to 20% from the current 25%.

Deputy Prime Minister and Finance Minister Surapong Suebwonglee said on Friday that board members of the ministry's Bank for Agriculture and Agricultural Cooperatives agreed to the debt relief for poor farmers.

He said the debt suspension program for small-time farmers was necessary/ Some 330,000 borrowers, or 15 per cent of the total farm-based debtors, could settle their debts finally. But farming borrowers now have debts of approximately 18 billion baht.

The BAAC is also considering a proposal to lower interest rates on debts being repaid by 1.7 million farmers by 3 per cent, said Dr Surapong.

He expected to apply the plan before Songkran, the Thai New Year which begins on April 13.

--Bangkok Post 2008-02-23

[torrenova]

I can't see them being able to revert back to 10% VAT anytime soon. It will be a killer for the economy.

[cclub75]

I can't see them being able to revert back to 10% VAT anytime soon. It will be a killer for the economy.

Seconded.

However, the temptation is just too strong ! This sweet VAT is so mouth-watering for them.

They love it.

When you have already privately taxed most of the public money and public projects, via corruption,... the only way up is to increase the... base. Therefore, to increase the total taxes amount.

Anyway. Difficult to blame them. It's almost the same story in every country.

With one big difference though... In a UE country at 19,6 % (France) or even 25 % (Danemak, Sweden) it's mechanically difficult to go further... To do more.

But when you start at 7 %...

So we won a reprieve. But they will eventually do it.

[lazeeboy]

not raising the tax is a great thing for the people of thailand