Famous Singer Tik Shiro Involved in Fatal Bangkok Car Accident, Two Dead

[webfact]

Govt considers tax cuts, VAT rise

By Wichit Chaitrong

The Nation ,Kanchanaburi

The Finance Ministry is reviewing the entire tax structure in light of greater cost of social programmes.

An increase in the value-added tax (VAT) is possible, along with a cut in personal income and corporate tax rates.

Finance spokesman Ekniti Nitithanprapas said at the seminar that many allowances could also be scrapped as each year the Revenue Department lost Bt50-Bt100 billion as a result of tax allowances. Chief among them was permission for individual taxpayers to deduct taxable income of up to Bt300,000 for investment in long-term equity funds (LTFs).

"The Fiscal Policy Office is studying tax restructuring as part of government efforts to increase tax revenue to support more social programmes," he said.

The LTF allowance, he said, only benefited high-income earners. But many other tax allowances needed to be reviewed. While some would be cancelled, others could remain.

Some allowances would wither away, and the ministry would propose a cut in income tax rates. Personal income taxes currently range from 10 to 37 per cent, but the top rate could be cut to 32 per cent.

Meanwhile, the corporate income tax ceiling of 30 per cent could also be lowered.

He also noted that the VAT rate of 7 per cent may be raised to 10 per cent. "Each increase of a percentage point will raise about Bt50 billion in tax revenue," he said, noting that VAT in Indonesia and Vietnam was 10 per cent, while in Singapore it was 7 per cent.

"Tax hikes should be implemented when the economy fully recovers." It also depended on government policy, he said.

Chakkrit Parapuntakul, head of the Public Debt Management Office, said public debt was likely to rise as the government planned to run a budget deficit throughout the next three years.

However, he assured that maximum debt would be around 52-53 per cent of gross domestic product and would not pass the 60 per cent threshold.

To achieve that goal, the office reiterated the need for the Bank of Thailand to buy into the ministry's zero coupon rate with its "massive" foreign exchange reserves, and for proceeds to be used to pay off the Financial Institutions Development Fund (FIDF)'s Bt1 trillion in debt.

Chakkrit said this option would be presented to the new central bank governor, Prasarn Trairatvorakul, who will take his post in October.

The ministry would then be freed from an interest burden of Bt50-Bt60 billion per annum, for debts incurred from financial bailouts after the financial crisis in the late 1990s. All up, the ministry has paid over Bt600 billion in interest.

"The ministry has to shoulder market rates for bonds issued to refinance the FIDF debt. After 10 years, the principal has been cut by only Bt100 billion," he said.

"We discussed this option with Finance Minister Korn Chatikavanij and MR Chatu Mongol Sonakul, chief of the Bank of Thailand's court of governors.

"An obstacle to this proposal is the central bank cannot buy into the bonds in the primary market. [so] there could be a special arrangement between the ministry and the central bank."

At the end of March, public debt stood at Bt4 trillion, or 42.2 per cent of GDP. In the next three years it could rise to 46-47 per cent, 48-50 per cent, and 50-53 per cent, respectively. Public debt was also expected to decline if the economy recovered and grew, Chakkrit said.

The office was also studying laws about using fiscal reserves, worth about Bt300 billion. Deposited at the central bank but getting no interest, the reserves could be deposited at private institutions and generate returns for the government, he said.

-- The Nation 2010-07-12

[spacemand]

Who will this hurt the most?

The rich, the companies or the poor?

Stupid question of cause we know who,

[BlackJack]

taxes to pay for the FC bailout

give me a break!!!!!!!!

[Jimi007]

What? Let's see cut the income tax on the highest income bracket from 37% to 32% while raising the VAT from 7% to 10% which affects everyone especially the poor! Amazing Thailand Amazes me again! Sounds like a George Bush tax plan...

[bkkjames]

I wonder what the mom and pop shop / noodle sellers reaction to the changes in the tax code will be? Oops I forgot. They don't pay income tax.

[cloudhopper]

I expect increasingly regressive taxation everywhere in the world.

[blazes]

What? Let's see cut the income tax on the highest income bracket from 37% to 32% while raising the VAT from 7% to 10% which affects everyone especially the poor! Amazing Thailand Amazes me again! Sounds like a George Bush tax plan...

Well said. The Thai method of raising revenue is exactly the same as what is happening in US, UK and Eurozone. Let the poor (which includes of course the vast middle class) pay for the idiocies of those operating in the financial sector. There is only one way to get out of the current mess: let all the banks who have made stupid decisions accept responsibility for their own actions and go bankrupt. No way the taxpayers of any country should be allowing the bankers to sleep well at night.

[ding]

What? Let's see cut the income tax on the highest income bracket from 37% to 32% while raising the VAT from 7% to 10% which affects everyone especially the poor! Amazing Thailand Amazes me again! Sounds like a George Bush tax plan...

DING DING DING DING DING!!!!

We have a winner!

This insanity makes me think the Reds were right. It tanked the USA so why not try it in Thailand? Unreal.

Maybe Cambodia

[gbswales]

What? Let's see cut the income tax on the highest income bracket from 37% to 32% while raising the VAT from 7% to 10% which affects everyone especially the poor! Amazing Thailand Amazes me again! Sounds like a George Bush tax plan...

Well said. The Thai method of raising revenue is exactly the same as what is happening in US, UK and Eurozone. Let the poor (which includes of course the vast middle class) pay for the idiocies of those operating in the financial sector. There is only one way to get out of the current mess: let all the banks who have made stupid decisions accept responsibility for their own actions and go bankrupt. No way the taxpayers of any country should be allowing the bankers to sleep well at night.

Nice thought - unfortunately bankruptcy would be at the expense of people like you and I who keep our money in banks! The problem is that the people at the top who gamble recklessly with our money are allowed to get away with it and keep their large salaries and pensions. I read the other day that while the banks are publising and cutting bonuses, in many cases basic salaries have been increased to take account of the bonus reductions - what a joke!

Unfortunately our new coalition government in the UK seems to be following a similar process of applying VAT increased and "sharing the pain across everyone" - excuse me? If I bodge up my finances would the government reduce the rate of interest I am paying to help me out, I think not they would stand by and let the bank reposess my home - this is morally wrong. Most ordinary people did not cause the financial collapse. It would be a golden opportunity to level the ridiculous gaps in income and end the ridiculous notion that anyone can "earn" millions. Of course it wont happen because government is directed by the rich.

[KKK]

Fairly typical of a government consisting of only upper income/class people. Look after number one..that's all that matters....

If selfishness was a crime the Thai government would be putting itself in prision....

[bkkjames]

If my memory serves me correct, back in 1998? didn't the gov at the time try the old raise the VAT to 10% only to change it back 1.5 years later.

[Jingthing]

What? Let's see cut the income tax on the highest income bracket from 37% to 32% while raising the VAT from 7% to 10% which affects everyone especially the poor! Amazing Thailand Amazes me again! Sounds like a George Bush tax plan...

DING DING DING DING DING!!!!

We have a winner!

This insanity makes me think the Reds were right. It tanked the USA so why not try it in Thailand? Unreal.

Maybe Cambodia

No VAT tax in the USA. Yet. I like a good Bush bashing as much as the next guy, but give it a rest, please.

[PolPat]

I thought the Englishman was investigating a property tax during the red demonstrations? This is highly regresive as the rich buy goods overseas.

[maxman71]

What? Let's see cut the income tax on the highest income bracket from 37% to 32% while raising the VAT from 7% to 10% which affects everyone especially the poor! Amazing Thailand Amazes me again! Sounds like a George Bush tax plan...

DING DING DING DING DING!!!!

We have a winner!

This insanity makes me think the Reds were right. It tanked the USA so why not try it in Thailand? Unreal.

Maybe Cambodia

No VAT tax in the USA. Yet. I like a good Bush bashing as much as the next guy, but give it a rest, please.

Oh, a VAT is coming in US; the Dems in Congress will wait to spring it after the Nov. 2010 elections, assuming they retain enough clout to do so. And Bam Bam's promise not to raise taxes on those earning less than USD 200K??? What a joke. For those in the US who have company-paid health insurance, starting in 2011 the value of those benefits will be added to their income and thus their taxes go up and possibly even cause them to be in a higher tax bracket as well; a double whammy for "income" they never received. If you're going to bash Bush, then you need to bash Bam-Bam; not much difference between the two.

[KKK]

What? Let's see cut the income tax on the highest income bracket from 37% to 32% while raising the VAT from 7% to 10% which affects everyone especially the poor! Amazing Thailand Amazes me again! Sounds like a George Bush tax plan...

DING DING DING DING DING!!!!

We have a winner!

This insanity makes me think the Reds were right. It tanked the USA so why not try it in Thailand? Unreal.

Maybe Cambodia

No VAT tax in the USA. Yet. I like a good Bush bashing as much as the next guy, but give it a rest, please.

45 of the 50 US states imposed a sales tax as percentage of purchased goods. You may not call it VAT but it amounts to the same thing. And before somebody gets into the state vs federal issue I just like to say a tax is a tax no matter who you pay it to. In fact a lot of countries don't call this kind of tax VAT. GST is another term for it..but it all amounts to the same thing....a tax imposed on purchased goods.

[webfact]

TAX OVERHAUL

Economy too fragile for VAT increase

By The Nation

The economic condition remains too fragile to cope with higher value-added tax (VAT), said Somchai Pakapaswiwat, a Thammasat University lecturer.

Following the Finance Ministry's study of raising VAT to cope with higher expenses, he said in MB Channel that the global and Thai economic recovery is in the uncertain stage given the unclear recovery in the US and the European debt crisis.

"The time is not right. To raise the VAT, we should wait till we are certain that the economy has fully recovered," he said.

Finance spokesman Ekniti Nitithanprapas said over the weekend that VAT could be raised along with many pending proposals to overhaul the tax structure in response to the launch of several new social programmes.

-- The Nation 2010-07-12

[Jimi007]

What? Let's see cut the income tax on the highest income bracket from 37% to 32% while raising the VAT from 7% to 10% which affects everyone especially the poor! Amazing Thailand Amazes me again! Sounds like a George Bush tax plan...

DING DING DING DING DING!!!!

We have a winner!

This insanity makes me think the Reds were right. It tanked the USA so why not try it in Thailand? Unreal.

Maybe Cambodia

No VAT tax in the USA. Yet. I like a good Bush bashing as much as the next guy, but give it a rest, please.

What is sales tax then? Isn't it just a different word for the same thing? It's a direct tax on goods, is it not? I was actually going to go back to Reganomics, the old trickle down theory. If the rich get to keep more then they will invest in new business. Yes, I was born and raised in California and a registered Democrat still.

[sharking]

dick turpin comes to mind

[gregb]

What? Let's see cut the income tax on the highest income bracket from 37% to 32% while raising the VAT from 7% to 10% which affects everyone especially the poor! Amazing Thailand Amazes me again! Sounds like a George Bush tax plan...

DING DING DING DING DING!!!!

We have a winner!

This insanity makes me think the Reds were right. It tanked the USA so why not try it in Thailand? Unreal.

Maybe Cambodia

No VAT tax in the USA. Yet. I like a good Bush bashing as much as the next guy, but give it a rest, please.

45 of the 50 US states imposed a sales tax as percentage of purchased goods. You may not call it VAT but it amounts to the same thing. And before somebody gets into the state vs federal issue I just like to say a tax is a tax no matter who you pay it to. In fact a lot of countries don't call this kind of tax VAT. GST is another term for it..but it all amounts to the same thing....a tax imposed on purchased goods.

Technically, a VAT tax or a GST is imposed on services as well as goods. That is the distinction.

The sales tax in the states is only on goods. VAT is much more intrusive and burdensome on the economy.

[Sateev]

What? Let's see cut the income tax on the highest income bracket from 37% to 32% while raising the VAT from 7% to 10% which affects everyone especially the poor! Amazing Thailand Amazes me again! Sounds like a George Bush tax plan...

DING DING DING DING DING!!!!

We have a winner!

This insanity makes me think the Reds were right. It tanked the USA so why not try it in Thailand? Unreal.

Maybe Cambodia

No VAT tax in the USA. Yet. I like a good Bush bashing as much as the next guy, but give it a rest, please.

I think his point was that VAT is a regressive tax that would impact the poor, and combined with a lower ceiling for the highest income tax bracket, it would, de facto, lower the tax for the rich, and raise the burden for the lowest earners. Much like the Bush tax cuts and his empowerment of corporations at the expense of the middle class, no?

Yes.

[HAL9000]

Why not eliminate the VAT refund for tourists program?

I can't imagine that it is a real incentive for tourists to choose Thailand over any other destination.

I also can't see tourists wanting to spend their valuable vacation time standing in line and filling out forms.

I was actually surprised to see the program in the first place.

If I buy a taxable item, I can pay tax on it the same as the locals. The locals probably need the money more than tourists anyway.

Besides the increased revenue, the government will save all the money it costs to process the claims.

[witsawakorn]

<BR>

<BR>

<BR>

<BR>What? Let's see cut the income tax on the highest income bracket from 37% to 32% while raising the VAT from 7% to 10% which affects everyone especially the poor! Amazing Thailand Amazes me again! Sounds like a George Bush tax plan...<BR>

<BR>DING DING DING DING DING!!!!<BR>We have a winner!<BR><BR>This insanity makes me think the Reds were right. It tanked the USA so why not try it in Thailand? Unreal. <BR>Maybe Cambodia <IMG class=bbc_emoticon alt= src="http://static.thaivisa.com/forum/public/style_emoticons/default/sad.gif"><BR>

<BR>No VAT tax in the USA. Yet. I like a good Bush bashing as much as the next guy, but give it a rest, please.<BR>

<BR><BR><BR>45 of the 50 US states imposed a sales tax  as percentage of purchased goods. You may not call it VAT but it amounts to the same thing. And before somebody gets into the state vs federal issue I just like to say a tax is a tax no matter who you pay it to. In fact a lot of countries don't call this kind of tax VAT. GST is another term for it..but it all amounts to the same thing....a tax imposed on purchased goods.<BR>

<BR><BR>Yes and as I recall State sales tax is applied to the total bill when you go to the checkout so you don't even get to see the real price of the goods that you want until you have already paid for it. In Iowa state tax wasn't small either as I recall it was 6%. Almost all US states also levy a state income tax too.<BR>

[peecee]

dick turpin comes to mind

Certainly not Robin Hood!

[IMBabaBobo]

"No VAT tax in the USA. Yet. I like a good Bush bashing as much as the next guy, but give it a rest, please."

They call it sales tax. It's in every state but Oregon. Ranges fron 5 to 10 %. Some cities also have a tax on top of the Federal, state and sales tax, not to mention social security tax. When I lived in the US I paid 53% tax not including sales tax.

Edited July 12, 2010 by IMBabaBobo

[bkk_mike]

Sorry - stop thinking like you're in the west...

Thailand is a high income tax country for Asia.

The top rate in Singapore is 20%

The top rate in Hong Kong is 17% (although they have a flat 15% rate if you give up allowances for children etc.)

The top rate in Malaysia is 26%

The top rate in Indonesia is 25%

The top rate in the Philippines in 32%

These countries don't have wide-ranging welfare states where the people who do work pay for those who can't/won't work. That means where the UK has a top rate of 50% it's losing money (borrowing is going up), whereas Thailand is making money (receives more in taxes than they spend)

High tax rates is the main reason that made me leave the UK. And I wish people would realise that continually taxing high earners more is why there are places called tax havens.

[Jingthing]

"No VAT tax in the USA. Yet. I like a good Bush bashing as much as the next guy, but give it a rest, please."

They call it sales tax. It's in every state but Oregon. Ranges fron 5 to 10 %. Some cities also have a tax on top of the Federal, state and sales tax, not to mention social security tax. When I lived in the US I paid 53% tax not including sales tax.

I think more than Oregon.

For example, Alaska, Delaware, Montana, New Hampshire.

Anyway, state taxes are not national VAT taxes and Bush had NOTHING to do with state taxes (well except for when he was Texass govnur). Now I feel dirty, making me defend Bush.

[ronrat]

"No VAT tax in the USA. Yet. I like a good Bush bashing as much as the next guy, but give it a rest, please."

They call it sales tax. It's in every state but Oregon. Ranges fron 5 to 10 %. Some cities also have a tax on top of the Federal, state and sales tax, not to mention social security tax. When I lived in the US I paid 53% tax not including sales tax.

I think more than Oregon.

For example, Alaska, Delaware, Montana, New Hampshire.

Anyway, state taxes are not national VAT taxes and Bush had NOTHING to do with state taxes (well except for when he was Texass govnur). Now I feel dirty, making me defend Bush.

They are hardly the most populous states are they and Alaska has the bonus for the residents.

[KKK]

Technically, a VAT tax or a GST is imposed on services as well as goods. That is the distinction.

The sales tax in the states is only on goods. VAT is much more intrusive and burdensome on the economy.

While VAT and GST is imposed on some services so sometimes is US sales tax.

Hawaii - has a gross receipts tax (called the General Excise Tax) which applies to nearly every conceivable type of transaction (including services), and is technically charged to the business rather than the consumer. Hawaii law allows business to pass on the tax to the consumer in similar fashion to a sales tax.

Maine has a 5% general, service provider and use tax.^[65] The tax on lodging and prepared food is 7% and short term auto rental is 10%. These are all generally known as "sales tax".

To name but 2 states that impose sales tax on services.There are lots more.....So US sales tax, VAT and GST are in fact the same. The exemptions may vary a little but they are basically the same thing.