PM Yingluck's Advisor Virabongsa Calls For Hike In VAT

[Yunla]

I remember back in the 70's and 80's all the British politicians promising that technology would bring a future where everyone was better off and had more free time. As we can all see this didn't happen, it just meant the few at the top got richer as they didn't need to waste good money on paying peasants. I don't think being unemployed was quite what we had in mind when they talked about more free time.

This was part of the backdrop to crushing the unions.

They promised us 'Jet-Boots' too in the 1970s. I remember watching it on tomorrows-world & thinking "wooo, I can't wait for my jet boots" , but it was all lies. Just a lot of crappy sports-shoes instead.

[OzMick]

I remember back in the 70's and 80's all the British politicians promising that technology would bring a future where everyone was better off and had more free time. As we can all see this didn't happen, it just meant the few at the top got richer as they didn't need to waste good money on paying peasants. I don't think being unemployed was quite what we had in mind when they talked about more free time.

This was part of the backdrop to crushing the unions.

They promised us 'Jet-Boots' too in the 1970s. I remember watching it on tomorrows-world & thinking "wooo, I can't wait for my jet boots" , but it was all lies. Just a lot of crappy sports-shoes instead.

Both scientists and science-fiction writers predict that in the future robotic machines will do all the work while we humans live a life of leisure. The transition period could be a little rough. There is also the Terminator theory where the machines say <deleted>.

For either to happen, we need thousands of brilliant engineers. The increase in VAT may be partially acceptable if it were to increase the quality of education in this country to produce those engineers. Instead it will be used to pay subsidies to not-quite-subsistence farmers working handkerchief size plots of land, whose only invention might be how to open a beer bottle without using their teeth.

[sparebox2]

If Europe can take circa 20% VAT, why can't do 10% or even 15%?

I support high VAT as the rich in Thailand are spending too much on silly over priced items like Mini Cooper or Ducati Bike. Why can't they just ride Nissan March or Honda Wave?

[OzMick]

If Europe can take circa 20% VAT, why can't do 10% or even 15%?

I support high VAT as the rich in Thailand are spending too much on silly over priced items like Mini Cooper or Ducati Bike. Why can't they just ride Nissan March or Honda Wave?

VAT is a regressive tax which means it takes a much higher percentage of the income of lower income earners - the poor if you like. Most countries have exemptions of VAT for basic commodities such as food and books to offset this.

Thailand needs taxes that tax the rich - capital gains, land tax and death duties - but are unlikely to get them because those making the decisions are rich.

[TAWP]

I don't know what the official inflation-number will be, but during the last month our food-bill has increased in range of 15-20%. And when I go to Tesco etc it is easy to see that the key-products we buy has jumped that much too in a lot of cases.

[h90]

If Europe can take circa 20% VAT, why can't do 10% or even 15%?

I support high VAT as the rich in Thailand are spending too much on silly over priced items like Mini Cooper or Ducati Bike. Why can't they just ride Nissan March or Honda Wave?

No Europe can't take 20 %.

All countries in Europe have big problems no economic grow, high inflation. All governments cut on education and health care.

Europe is going down the hill at the moment.

But VAT might be one of the smaller problems.

[Payboy]

Virabongsa

I would take every statement with a pinch of salt if it were from a guy who has a "bong" in his name.

[sparebox2]

I don't know what the official inflation-number will be, but during the last month our food-bill has increased in range of 15-20%. And when I go to Tesco etc it is easy to see that the key-products we buy has jumped that much too in a lot of cases.

Have to tried their "ROLL BACK" items?

[volk666]

..I support high VAT as the rich in Thailand are spending too much on silly over priced items like Mini Cooper or Ducati Bike. Why can't they just ride Nissan March or Honda Wave?

Because buying Mini Coopers is the only way for them to show they have money. In the West they'd be buying top range BMW's and Lexi(?), but here all they can afford is Mini, thanks to super high taxes on that sort of cars.

Similarly, people who buy Benz E-class or BMW 5 series here would be driving Ferraris in the West.

And I'm not talking about relative prices, I'm talking in absolute terms - Benz here cost as much as Ferrari there.

It's also nice to confirm that govt supporters here continue to deny that prices are going up. People are just shopping wrong.

And since they are shopping wrong, it's also the time to teach them that VAT increases are good, and even that they are fair - as everyone pays the same rate, there are no loopholes for the rich.

In the meantime - where are the thousands of govt sponsored "Took Jai" shops promised to open two weeks ago and sell stuff at 20% below market value? I guess there's not need now, just go buy Roll Back items at Tesco...

[maidu]

Send them to Phuket to be trained as jet ski repair men. I hear its very lucrative.

Actually, there are no jet ski repairmen in Phuket or Pattaya - at least not for body damage. The extortionists use the same little scrapes to make tens of thousands of dollars per day, over and over. It's a major disgrace for Thailand, but no one in government or police can do anything about it. The extortionists are simply too powerful to touch.

If Europe can take circa 20% VAT, why can't do 10% or even 15%?

I support high VAT as the rich in Thailand are spending too much on silly over priced items like Mini Cooper or Ducati Bike. Why can't they just ride Nissan March or Honda Wave?

VAT is a regressive tax which means it takes a much higher percentage of the income of lower income earners - the poor if you like. Most countries have exemptions of VAT for basic commodities such as food and books to offset this.

Thailand needs taxes that tax the rich - capital gains, land tax and death duties - but are unlikely to get them because those making the decisions are rich.

well said. It's no surprise that T is behind this very bad idea. he probably instigated it, as he does with most other PT's bad ideas. Anything for him to get richer, - and the poor can stick it where the sun don't shine.

[manfrommanteo]

"Taxation tends to have the heaviest impact on middle-income earners, Virabongsa said, because existing tax measures contain many exemptions, making it hard for the government to collect more from the rich,"

Here's a bright idea .... remove the loopholes make the rich pay their fair share of taxes.

Good forbid they give the poor a middle class a chance and a break.

Good forbid the poor and middle class are able to afford to eat more than mama noodles

towards the end of their pay periods.

Dumb idea, not bright. Yes, many poor and abused Thai workers, uneducated on purpose by those who exploit them. But anyone with half a brain cell knows you cannot tax the producer out of his profits and expect him to stay in country. Loopholes are there to encourage investment which, in turn, creates jobs. All the middle class and poor need to do is become business owners and take advantage of those same loopholes, which are legal, and they'll get the same tax breaks. If you don't understand this, you're an economic idiot.

[gregb]

"Taxation tends to have the heaviest impact on middle-income earners, Virabongsa said, because existing tax measures contain many exemptions, making it hard for the government to collect more from the rich,"

Here's a bright idea .... remove the loopholes make the rich pay their fair share of taxes.

Good forbid they give the poor a middle class a chance and a break.

Good forbid the poor and middle class are able to afford to eat more than mama noodles

towards the end of their pay periods.

Dumb idea, not bright. Yes, many poor and abused Thai workers, uneducated on purpose by those who exploit them. But anyone with half a brain cell knows you cannot tax the producer out of his profits and expect him to stay in country. Loopholes are there to encourage investment which, in turn, creates jobs. All the middle class and poor need to do is become business owners and take advantage of those same loopholes, which are legal, and they'll get the same tax breaks. If you don't understand this, you're an economic idiot.

Great idea! Let's tax the poor more heavily! That will give them an incentive to become rich!

You have got to wonder about the armchair economists on Thai Visa. "Producers" as you call them, should have no problem paying a larger share of their wealth in taxes. They are the ones receiving the benefits from this country after all. If a business wishes to leave, go. There is little reason for export businesses to stay in Thailand anyway now that wages are going up.

But for all those business who want access to the Thai markets, they aren't going anywhere. They will stay here and make money off the Thai people extracting Thai resources and the government has every right to demand they pay a fair portion for that privilege and for the common infrastructure that they use.

I have no desire to subsidize these so called "producers" by giving them tax breaks. Anyone who doesn't want to pay...Suvarnabhumi is right over there in that swamp. Just make sure you get there 4 hours before your flight or you might not make it through immigration.

[coma]

Hike the minimum wage, then hike the VAT. Coupled with inflation the way it is at the moment I really don't see the everyday Thai doing it any easier.

[TAWP]

"Taxation tends to have the heaviest impact on middle-income earners, Virabongsa said, because existing tax measures contain many exemptions, making it hard for the government to collect more from the rich,"

Here's a bright idea .... remove the loopholes make the rich pay their fair share of taxes.

Good forbid they give the poor a middle class a chance and a break.

Good forbid the poor and middle class are able to afford to eat more than mama noodles

towards the end of their pay periods.

Dumb idea, not bright. Yes, many poor and abused Thai workers, uneducated on purpose by those who exploit them. But anyone with half a brain cell knows you cannot tax the producer out of his profits and expect him to stay in country. Loopholes are there to encourage investment which, in turn, creates jobs. All the middle class and poor need to do is become business owners and take advantage of those same loopholes, which are legal, and they'll get the same tax breaks. If you don't understand this, you're an economic idiot.

Great idea! Let's tax the poor more heavily! That will give them an incentive to become rich!

You have got to wonder about the armchair economists on Thai Visa. "Producers" as you call them, should have no problem paying a larger share of their wealth in taxes. They are the ones receiving the benefits from this country after all. If a business wishes to leave, go. There is little reason for export businesses to stay in Thailand anyway now that wages are going up.

But for all those business who want access to the Thai markets, they aren't going anywhere. They will stay here and make money off the Thai people extracting Thai resources and the government has every right to demand they pay a fair portion for that privilege and for the common infrastructure that they use.

I have no desire to subsidize these so called "producers" by giving them tax breaks. Anyone who doesn't want to pay...Suvarnabhumi is right over there in that swamp. Just make sure you get there 4 hours before your flight or you might not make it through immigration.

Absolutely the rich shouldn't have 'loopholes', I don't want to pay for that - but neither do I want to pay for those that refuse to try to be productive.

Taxing those that work hard and make it extra hard isn't the way forward in any country. To complain that business owners should be taxed more since they 'reap the benefits of the nation' shows a clear lack of understanding of how it is to start and run a business. You are welcome to put forward your own money, work 60h weeks for 10 years and then be told that you are a bloodsucker and taking advantage of your staff when you can afford to buy a big house and car.

[rubl]

OP: "Therefore, the tax system should be based on consumption."

Thailand Live Thursday 3rd of May #39:

"Posted Today, 14:19

PM confident product prices declining

BANGKOK, 3 May 2012 (NNT)-Prime Minister Yingluck Shinawatra insisted that commodity prices have been declining, while assuring people that the government will continue to monitor goods prices and the cost of living for Thai people."

[rubl]

Update on my post #75:

Thailand Live Thursday 3rd #49:

"Posted Today, 15:54

RT @tulsathit: Yingluck: Floods and hot weather are prime causes of people's increasing expenses."

[Buchholz]

Update on my post #75:

Thailand Live Thursday 3rd #49:

"Posted Today, 15:54

RT @tulsathit: Yingluck: Floods and hot weather are prime causes of people's increasing expenses."

It's true I do drink more Pepsi Max as it has been extra hot here recently, but I wasn't aware that by doing so, it accounts for the increased price of fish I buy at the local wet market.

.