Government Extends 7% Vat For Two More Years

[george]

Government extends 7% VAT for two more years

BANGKOK: -- As the economy becomes more sluggish, the Cabinet yesterday acted to defer the rise of Value-Added Tax (VAT) for another two years.

Government Spokesman Surapong Suebwonglee said the Cabinet approved a draft executive decree to retain VAT at the current 7 per cent until September 30, 2007.

The government was due to increase VAT to 10 per cent on October 1, according to an earlier executive decree, as the current 7 per cent VAT was to expire at the end of next month. But according to the new decree, VAT will stay at 7 per cent not rising to 9 per cent until October 1,2007.

Dr. Surapong said the Cabinet decision stemmed from government's concern to encourage private sector expenditures which are crucial for economic recovery.

The Cabinet wants to support such activities for the added time frame.

--TNA 2005-08-10

[Plus]

If they are really concerned about poverty they should abolish VAT altogether - it's a flat rate tax regardless of one's income and it weighs heavier on those who can afford it least.