NCPO maintains 7-per cent VAT for one year

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NCPO maintains 7-per cent VAT for one year
The Nation

BANGKOK: -- NCPO on Thursday announced that the VAT will be maintained at 7 per cent for another year from October 1, 2014 to September 30, 2015 in an attempt to boost the domestic consumers' spending that will lead to the country's economic growth.

The VAT then will be increased to 10 per cent, effective from October 1, 2015 onward.

By the law, when buying products and services consumers in fact will have to pay the VAT at 10 per cent of those products and services’ prices. But, the VAT was in exemption by previous governments that issued announcements to collect it at 7 per cent for many years.

Source: http://www.nationmultimedia.com/business/NCPO-maintains-7-per-cent-VAT-for-one-year-30238811.html


-- The Nation 2014-07-18

[terryp]

The VAT then will be increased to 10 per cent, effective from October 1, 2015 onward.

they going to drop it to 6.3% THEN Oct 2015 ....BP says 9% Nation 10% ........? stupid to even think of an increase

Edited July 18, 2014 by terryp

[IamNoone88]

You would not mind an increase if the funds were spent correctly and to the benefit of the country and with oversight. But that will not happen.

[Pib]

By law it says 10%, but it been waived numerous times and kept below 10%...been at 7% for a long time...I fully expect it will get waived again about this time next year...and my guess it will just stay at 7%.

Edited July 18, 2014 by Pib

[belg]

just saw new menu in fuji, every item + 20-40 baht or more

inflation ... and next year 7 to 10% + 10% service charge

start to be a luxery meal

[Emster23]

"The VAT then will be increased to 10 per cent, effective from October 1, 2015 onward." Just love those regressive taxes. Don't touch the rich, put it on the backs of the poor. Brilliant.

[Yme]

Given the huge corporate tax rate reduction and splitting of personal income tax rates by the previous government not increasing the 7 per cent figure for the next year is a bit of a surprise, especially when consideration is given to how small the tax base is.

Regressive tax that doesn't touch the rich? Hardly. In fact quite the opposite

The more you spend the more tax you pay. The "rich" can minimise their income tax through various methods which are generally not available to the middle income class who do pay income tax and of no consequence to the lower economic class who pay no income tax.

A VAT/GST probably has more effect on the "rich" than the lower and even middle income classes who make a lot of purchases at fresh markets and such where little or no VAT/GST is collected, compared to the "rich" who shop more at supermarkets through to boutique shops and dine out at establishments who collect money for the government as required.

[noendtoit]

It's insane for any government to ever raise any tax that is measured in a percentage. The revenue automatically goes up in lockstep with inflation. Increasing a percentage is an acceleration that only amounts to a ripoff of the taxpayers and a governmental admission that they are unable to manage their budgets.

Of course this is the norm everywhere, isn't it.

[CaptHaddock]

And the regressive VAT furnishes 40% of the govt revenue. Add that to the recent trial balloon to require substantial co-payments for the Basic National Healthcare Program (30 baht) and you can see the the junta is going to burden the poor and favor the rich. But then, that was the whole point of destroying democracy after all.

"The VAT then will be increased to 10 per cent, effective from October 1, 2015 onward." Just love those regressive taxes. Don't touch the rich, put it on the backs of the poor. Brilliant.

[Pib]

And the regressive VAT furnishes 40% of the govt revenue. Add that to the recent trial balloon to require substantial co-payments for the Basic National Healthcare Program (30 baht) and you can see the the junta is going to burden the poor and favor the rich. But then, that was the whole point of destroying democracy after all.

I think the trial balloon you refer to was nothing more than a statement made by "one" person when some NCPO officials made a visit to the Health Ministry...and then the statement went viral. See quote below and more info at the Nation news link where of course denials abound into who said what. But one way for the junta to quickly lose support of the Thai population would have been even a brief period of possible support for the proposal...and the junta did not support it as it was just a person proposing an idea which flew as well as a lead balloon. I think the most appreciated, prized, and needed social program by the Thai population is the 30 baht medical program---it's a third rail program which is dangerous to touch unless the touch provides even more medical benefits.

Dr Thawatchai Kamoltham, director general of the Department for Development of Thai Traditional and Alternative Medicine, said he had floated the idea during a meeting on May 31 with NCPO officials, when they visited the ministry. He said he had not suggested any ratio, nor commented that 30-50 per cent of cost should be borne by the patients, as discussed widely in media or among beneficiaries who enjoy free or low-cost scheme under the National Health Security |Office (NHSO) or other packages, including people with Aids, or human immunodeficiency virus (HIV)

[CaptHaddock]

It was Dr. Narong Sahametapat, the permanent secretary (top-level civil servant) for the Dept. of Public Health, who called for co-payments of 30% to 50% of the cost of treatment.

http://www.matichon.co.th/news_detail.php?newsid=1405116754 (Thai language article)

Later, Dr. Narong claimed he meant no such thing. That's the way trial balloons work. Just like shutting off Facebook for an hour to see the reaction and then blame it on a technical glitch. They'll come back to the 30 bath program.

And the regressive VAT furnishes 40% of the govt revenue. Add that to the recent trial balloon to require substantial co-payments for the Basic National Healthcare Program (30 baht) and you can see the the junta is going to burden the poor and favor the rich. But then, that was the whole point of destroying democracy after all.

I think the trial balloon you refer to was nothing more than a statement made by "one" person when some NCPO officials made a visit to the Health Ministry...and then the statement went viral. See quote below and more info at the Nation news link where of course denials abound into who said what. But one way for the junta to quickly lose support of the Thai population would have been even a brief period of possible support for the proposal...and the junta did not support it as it was just a person proposing an idea which flew as well as a lead balloon. I think the most appreciated, prized, and needed social program by the Thai population is the 30 baht medical program---it's a third rail program which is dangerous to touch unless the touch provides even more medical benefits.

Dr Thawatchai Kamoltham, director general of the Department for Development of Thai Traditional and Alternative Medicine, said he had floated the idea during a meeting on May 31 with NCPO officials, when they visited the ministry. He said he had not suggested any ratio, nor commented that 30-50 per cent of cost should be borne by the patients, as discussed widely in media or among beneficiaries who enjoy free or low-cost scheme under the National Health Security |Office (NHSO) or other packages, including people with Aids, or human immunodeficiency virus (HIV)