Thai Finance Minister Rules Out V A T Hike

[webfact]

Thai finance minister rules out VAT hike
By English News



BANGKOK, April 1 – Thailand’s 7 per cent value added tax (VAT) will not be increased as the government’s tax collection target of Bt2.1 trillion will be achieved at the end of this fiscal year, the deputy prime minister/finance minister said today.

Denying a report of higher VAT by 1 per cent, Kittiratt Na-Ranong said tax collection in the first five months of this fiscal year, starting last October, has been above the target.

“Thailand’s VAT at 7 per cent is almost the same rate as Singapore’s and the lowest in Southeast Asia. There is no plan to adjust it,” he said.

Mr Kittiratt said the collection personal income tax, traditionally ends on March 31, has been extended to April 8 while deadline for payment of corporate income tax is end of May, adding that revenue from tax collection should be higher than the target despite tax reduction. (MCOT online news)


-- TNA 2013-04-01

[MaxLee]

Thailand is gonna become a more inflation expensive place, but the Mafia ministries of Thsiland are so stubborn they only wanna import through the strong Baht, not exporting (anymore)

[Ricardo]

Why not increase VAT, for the next several years, to pay for the infrastructure-projects, instead of borrowing the money for 50 years ?

Or would that cause problems, because the ordinary people would realise that it does affect them, after all ?

[dcutman]

Oh the confusion, this skit is so appropriate for this govt.

[soi41]

Another little lie from Mr K?? According to newsclips from today, Finance ministery's Fiscal Policy Office are considering a VAT hike to 8%.

VAT in Thailand is almost the same as Singapore, according to Mr K. It is either the same or higher or lower, Or??

And it is NOT the lowest in Asia! Both Taiwan an Japan has a 5% VAT-rate!

This guy must be without competition (sorry Chalerm) the biggest airhead in the present government.

Someone is going to have a fieldday, with the big loans to be taken, and this guy in charge

[MASSIMO23]

Another little lie from Mr K?? According to newsclips from today, Finance ministery's Fiscal Policy Office are considering a VAT hike to 8%.

VAT in Thailand is almost the same as Singapore, according to Mr K. It is either the same or higher or lower, Or??

And it is NOT the lowest in Asia! Both Taiwan an Japan has a 5% VAT-rate!

This guy must be without competition (sorry Chalerm) the biggest airhead in the present government.

Someone is going to have a fieldday, with the big loans to be taken, and this guy in charge

Sorry but Taiwan and Japan are not part of south-east Asia.

It does read "Southeast Asia" in the article above.

Yes Singapore has the same VAT rate as Thailand.

Edited April 1, 2013 by MASSIMO23

[Thai at Heart]

Another little lie from Mr K?? According to newsclips from today, Finance ministery's Fiscal Policy Office are considering a VAT hike to 8%.

VAT in Thailand is almost the same as Singapore, according to Mr K. It is either the same or higher or lower, Or??

And it is NOT the lowest in Asia! Both Taiwan an Japan has a 5% VAT-rate!

This guy must be without competition (sorry Chalerm) the biggest airhead in the present government.

Someone is going to have a fieldday, with the big loans to be taken, and this guy in charge

Sorry but Taiwan and Japan are not part of south-east Asia.

It does read "Southeast Asia" in the article above.

Yes Singapore has the same VAT rate as Thailand.

Ah but everyone in Singapore pays their taxes.

[55Jay]

Why not increase VAT, for the next several years, to pay for the infrastructure-projects, instead of borrowing the money for 50 years ?

Or would that cause problems, because the ordinary people would realise that it does affect them, after all ?

Yeah, regardless, even for a targeted period of time/project, once it goes up, won't come back down.

[Locationthailand]

VAT, withholding tax, customs 'duty' (tax) and personal income tax. This is getting as bad as the west with all the hidden 'taxes'. Let's hope he does not increase it because it is not the tax that irks me, it is all the paper work involved that takes time.

[irwinfc]

is this another April Fool's Day gag?

[MikeOboe57]

"There is no plan to adjust it,” he said.

But it could also be another little "white lie" to make everybody feel better.

[dressedingreen]

Nothing increases the probability of government policy change more than ministerial denial.

DIG

[Will2011]

It is amazing that there are always some people complaining. If the VAT rate was increased, we'd hear complaints before things would be more expensive. And when there's no increase, some people are still complaining that it should be increased. Wow, it's not easy make you happy. Anyway, why not becoming Finance Minister and see how good you can rule?

[MikeOboe57]

It is amazing that there are always some people complaining. If the VAT rate was increased, we'd hear complaints before things would be more expensive. And when there's no increase, some people are still complaining that it should be increased. Wow, it's not easy make you happy. Anyway, why not becoming Finance Minister and see how good you can rule?

I have one ability that any Cabinet member lacks completely. I know for which job I am not qualified.

"It doesn't take a good actor to recognize a bad one" (Captain Peter Quincy Taggart, Galaxy Quest)

[Arkady]

Why not increase VAT, for the next several years, to pay for the infrastructure-projects, instead of borrowing the money for 50 years ?

Or would that cause problems, because the ordinary people would realise that it does affect them, after all ?

This bad penny has been coming round for years. VAT is actually supposed to be 10%, the rate it was originally brought in at. It was reduced to 7% through a temporary waiver that keeps on being renewed. No one has dared increase it or make the 7% permanent, so the issue is destined to keep going round and round until someone makes a decision. A hike even to 8% would certainly be unpopular with voters and it might cost the government more then it raises in incremental tax when they dish out more populist goodies to compensate. VAT is a very efficient tax to collect but the problem with it is that the burden is heaviest as a percentage of income on the poor because they tend to spend nearly all their income on VATable subsistence goods and there is no way for them to evade it. Wealthier people don't spend all their income and avoid VAT on many things by paying cash, .e.g. for car repairs, house renovation etc.

[goatfarmer]

The cynics seem to have overlooked the last line:

"...revenue from tax collection should be higher than the target despite tax reduction."

Sounds like Mr Kittirat has learnt the lesson that less is often more.