Thai Revenue Department proposes another year of 7%t VAT

[webfact]

Revenue Department proposes another year of 7%t VAT
By Digital Content

BANGKOK, April 24 -- The Revenue Department has affirmed that it earlier advised the Finance Ministry to extend the 7 per cent value-added tax (VAT) for another year to ease burden on consumers during the current economic slowdown, according to the agency chief.

Director General Sutthichai Sungkamanee said there was no discussion with caretaker Prime Minister Yingluck Shinawatra on a plan to increase the VAT to 10 per cent at the meeting on Wednesday as reported by some media.

Mr Sutthichai said the Revenue Department earlier advised the Finance Ministry to keep the VAT rate unchange for another year.

The two-year extension of the VAT at 7 per cent was due to expire on September 30, he said.

The extension needs the approval of both the cabinet and the Election Commission (EC), he added. (MCOT online news)

-- TNA 2014-04-24

[Old Man River]

I'll take it, since I was expecting 10%, but since the economy is slowing greatly, status quo is alright. Some would argue to speed up consumer spending VAT should be lowered, but since it was probably going to be raised, it's Ok.

For those still in the twilight zone about taxes, the Thai government raises most of it's tax revenues from VAT, not from income taxes.

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[Prbkk]

Difficult decision for the next govt. It should be 10% ( or higher).

[rreddin]

Difficult decision for the next govt. It should be 10% ( or higher).

Forget economic considerations, this is going to be a political decision. If there is a real chance of the caretaker government being removed fom power without and election, they will make sure the incoming government, be it dictatorship or appointed, will be saddled with making some very unpopular economic decisions. That is politics and it is the same the World over.

[nong38]

10% is being talked about because of the absence of tourists caused the childish antics of the politicians whether it being government or opposition. Whilst it is true that VAT is the major revenue for the Thai Govt ( only those who are daft enough, or honest enough, to fill in a tax return pay income tax, no further comment required) do not for get the huge rise in alcohol duty that arrived last 3rd quarter.

The authorities are hoping that with the forseeable future that tourists will return to balance the books, if they dont then VAT will rise and that will hit the local population as they will find it hard to avoid, this will then cause the cost of living to increase for all, the start of a spiral.

The previous administration took great stock from the fact that VAT was so low, how things have changed so quickly. The funding gap could also be addressed in another way by scrapping the rice pledging scheme which is a millstone round the country's neck if only someone had the bottle do deal with it, we hold our breath and await amazing reveations to come.

[espinoza]

Difficult decision for the next govt. It should be 10% ( or higher).

Forget economic considerations, this is going to be a political decision. If there is a real chance of the caretaker government being removed fom power without and election, they will make sure the incoming government, be it dictatorship or appointed, will be saddled with making some very unpopular economic decisions. That is politics and it is the same the World over.

I`m sure if the caretaker government is removed without an election the war is going on. The killings will be like Rwanda.

[Thai at Heart]

Still don't understand why the revenue dept gets involved in recommending this.

Surely its a purely economic and political decision. If the issue is to make it easier for consumers, why not cut it then?

[Ulic]

Focus on collecting taxes from those who do not pay what they are supposed to. Not raising the VAT.