Thailand's Food Sellers And Taxi Drivers May Pay V A T

[webfact]

Food Sellers And Cabdrivers May Pay VAT Taxes



BANGKOK: -- The Thai government is making adjustments to its tax system, and may eventually require taxi drivers and food merchants to start paying VAT taxes. Recently the corporate tax rate was cut by 3 percent, and the government wants to raise the VAT tax rate from 7 to 8 percent.

This year the Thai government is estimated to lose about 100 billion baht in reduced tax revenue, after lowering the corporate income tax rate from 23 percent to 20 percent.

However, government officials said the difference in lost tax revenue can be made up in other areas, such as increasing the VAT tax rate from 7 percent to 8 percent. But because of public opposition, there are no immediate plans to implement a VAT tax increase.

The difference in lost revenue can also be partly made up by overhauling the tax structure to include people that are currently not paying taxes on income, such as taxi drivers and food vendors, said a government spokesman.

Even though the business tax rate was lowered to 20 percent, Mr. Satit Rankasiri, the director general of Customs department, said that he was sure his department will collect their targeted tax revenues for this year.

As for the Value Added Tax (VAT), the personal income tax was still in the normal range, even though the new tax structure had reduced the maximum tax rate for individuals from 37 percent to 35 percent, he said.

The fiscal code amendment proposition to the parliament would apply to the taxable fiscal year of 2013, which would be collected from taxpayers filing in early 2014. The changes would affect husbands and wives filing separately, and because of the income distribution, would result in a lower rate of tax paying, Mr. Satit said.

“The department can still collect 25 percent more tax than the goal, but what is of concern is that the juristic person (business) filing in the middle of this year would pay reduced taxes from 23 percent to 20 percent,” Mr. Satit said.

“I had insisted to the authorities to follow the revenue and the purchasing and selling tax filing of the last year to be compared.”

Full story: http://www.pattayadailynews.com/en/2013/04/16/food-sellers-and-cabdrivers-may-pay-vat-taxes/

-- Pattaya Daily News 2013-04-16

[rheinwiese]

Vendors and cabbies filing VAT returns? Perhaps E&Y or Deloitte for the annual audition and balance sheet. What the hell are these guys smoking?

[sjjmmi]

Not going to happen

[siampolee]

So the select few receive a tax cut and the people at large are going to be targeted to provide the shortfall in tax revenue income.

Shouldn't be a problem to enforce taxi V.A.T. payments as all transaction (well nearly all) are recorded via the meter charge and the income can be read when the meter is bled at the end of a drivers day or his or her shift. Owner drivers should be no big problem,

Problem is going to be with the rented taxi's which at times are sub leased a time or two, these will be a challenge regarding the levying of the tax who is going to pay and who pays the V.A.T. the co-operative that rents the taxi out to the drivers or the drivers themselves named or unnamed sub leased drivers this situation is going to compound the payment conundrum.

Food stalls, well that is going to be a farce will there be a tax official at each stall, booth shop etc to record the income so as to thus be able to both assess and level the tax payment due?

So good to see that this scheme is relieving the rich of yet another part load of their tax burden and moving the onus of tax payment to the little people both consumers and providers of services, indeed a fine example of in truth what this government actually thinks and the contempt it has of the electorate.

Indeed the rich get richer and the Indeed poor get poorer, throw another peasant on the fire of money so as to keep the rich warm abed at night

Edited April 16, 2013 by siampolee

[NongKhaiKid]

Just how is this going to be assessed ? Thai officialdom have this never ending ability to open their mouths without engaging their brains, or what passes for one

[soi41]

This government is supposed to represent the poor (their voterbase) and yet, they have no problem of taking from the poor and give to the already VERY rich.

When will the Thai people wake up ??

[EyesWideOpen]

These poor food stand people. First they have to pay shakedown money to the police, and now the government wants them to pay taxes to make up the shortfall for a tax break for the rich? I LOVE reading TV each day... :-)

[GiantFan]

Once the general masses start paying taxes, they will want their government to do something for them. Slippery slope.

[dcutman]

So much for all the "Poor" suckers, PTP is a reverse Robin Hood.

[LuckyLew]

If it is income it should be taxed

However, where I come from there is a minimum amount, if you do not make a certain amount of money you pay no income tax.

I am sure all the upstanding food venders will declare the correct amoount

..

Since it is common knowledge that BIB and politicans all collect tea money ... why not tax the tea money?

..

I am looking forward to seeing the traffic jams caused by the taxi drivers around Govt house if they have to tart paying taxes.

Personally I think 95% of taxi drivers are <deleted> ... I hope they get hit hard

[UbonOz]

It is the customer that pays the VAT not the supplier, VAT is added to the cost of the supplied item, ie. 100baht becomes 110 baht if taxed at 10%.

The supplier still retains their 100 baht, no reason to complain, just extra paperwork.

All suppliers should be registered and display their licence, proof they are legitimate.

You would like to think the extra taxes will filter back to provide better infrastructure, I have my doubts.

Income tax is a separate issue, nothing to do with VAT.

Edited April 16, 2013 by UbonOz

[MaxLee]

So does that mean staple food and taking the taxi will be more expensive from now on??

[EyesWideOpen]

If it is income it should be taxed

However, where I come from there is a minimum amount, if you do not make a certain amount of money you pay no income tax.

I am sure all the upstanding food venders will declare the correct amoount

..

Since it is common knowledge that BIB and politicans all collect tea money ... why not tax the tea money?

..

I am looking forward to seeing the traffic jams caused by the taxi drivers around Govt house if they have to tart paying taxes.

Personally I think 95% of taxi drivers are <deleted> ... I hope they get hit hard

Tax the tea money.....Man that made my day !!!!!!! :-)

[rubl]

So my 30/35 Baht noodle lunch will either get smaller (again) or be 35/40 Baht instead. Taxi meters will probably start at 40 Baht with 3 Baht increases every km. In the mean time especially large co-operations have profitted from a taxrate drop from 30% to 20%. In the mean time trillions are to be spent on high-speed rail which has yet to see real justification. Another year of 400 billion on price pledging for the not-so-poor middlemen. 350 billion to be borrowed real soon now as by July the very, very urgently pushed-through decree will expire together with the need to urgently do something probably.

How nice that the government enforced a minimum wage of 300 Baht / day and is giving our kids tablets to keep them quiet. School uniforms aren't getting cheaper either. VAT, paid by all and effecting the poor most.

[whatsupdoc]

It took a long time but finally this government might have come up with a good idea (widen the tax base and have small businesses actually pay tax). But whether they are capable of implementing the idea.....?

[Thai at Heart]

How does an issue like this come up during a national holiday?

[siampolee]

It took a long time but finally this government might have come up with a good idea (widen the tax base and have small businesses actually pay tax). But whether they are capable of implementing the idea.....?

If the same zeal is applied to the implementation of this tax scheme as is paid to the creaming off of project monies indeed the taxation scheme will be a success, of course there will be commissions payable to interested politicians and state officials too have no doubt about that matter thus success could be achieved less the going commission rates..

[AleG]

How does an issue like this come up during a national holiday?

It's a good time to send a trial balloon when people are not paying much attention to the news.

[Thai at Heart]

How does an issue like this come up during a national holiday?

It's a good time to send a trial balloon when people are not paying much attention to the news.

Where did they even find the guy to make a comment? Bizarre

[technologybytes]

I thought everybody PAID VAT, the headline should be that Taxi Drivers & Food Vendors may CHARGE VAT.

[doggie888888]

News is taken from some Pattaya "newspaper". Best taken as joke of the day.

Besides, they can't even get taxi drivers to use their bloody meters.

[rubl]

BTW a few weeks ago we can a minister or other government official telling us that a VAT increase might be possible around 2017 when all good measures of this government had brought a sufficient wealth level to all Thai.

[NongKhaiKid]

So much for all the "Poor" suckers, PTP is a reverse Robin Hood.

Yes but they take from the poor and keep it for themselves, how else did they all get so rich ?

[monty1412]

Its stupid, harebrained myopic statements like this that affect the rest of us.... can you not see the day when the taxi driver tries to charge you VAT on top of the fare..... of course no money will go back to the revenue/ tax department.

[sawati]

VAT on my Khao man khai???

There we go!

Make expats paid taxes!!

[Thai at Heart]

There are thousands of businesses that are above the vat limit but don't register.

Changes like this were going to be inevitable one day. Seems that time has come.

[drdoom6996]

PTP has to get the money from somewhere. They stole what was there for projects and infrastructure. The 2.2 trillion is already gone before it ever gets borrowed. Where is the money going to come from. Soon they will start charging prostitutes.

[khunPer]

They reduced the corporate tax as help, so people could have their pay rise to 300 baht a day. Well, someone has to pay for a pay rise. Higher VAT and higher prices at food stalls, pay rise will soon be gone – if not already gone by the price increases caused by the pay rise – may even end up with less buying power than before the pay rise.

[RisqEM]

There is one thing these idiots in charge are good for...a laugh and that's about it! We impose a stupidity tax, then the gov't and elite will pay up!

[Nobelcat]

I thought everybody PAID VAT, the headline should be that Taxi Drivers & Food Vendors may CHARGE VAT.

Agreed. I didn't realize they didn't need to pay VAT to began with. Silly that restaurants need to pay it but the food vendor outside doesn't. But anyways, yes, it's not going to get enforced since there's no way to enforce it. But it's also just as unenforceable that I pay my US taxes on income I made aboard and yet I do it. So it might increase tax receipts.

Anyways, how many things are law but just not enforced? If I remember correctly, it's illegal to even have a food cart on the street yet everyone does it.