Thai Finance Ministry proposes to raise the VAT rate to 10 percent

[rubl]

Didn't they recomment only a month ago that there was no need for an increase

Well, since you brought it up and no one seems to have answered or know the answer, maybe you should check and report back to us?

BTW didn't they suggest that due to a weak financial situation the taxpayer base had to be broadened, the source of income of the state increased?

http://www.thaivisa.com/forum/topic/767207-thai-finance-ministry-proposes-to-raise-the-vat-rate-to-10-percent/page-3#entry8514580

[Thai at Heart]

Mr. Rangsan firmly believes that the new VAT rate would not affect low-income earners

BS, it affects everybody but the monkhood and anyone else living on handouts. The only way it wouldn't affect low income earners would be if they were exempted from paying the extra on goods and services.

Thailand is already approaching or surpassing the cost of first world countries for many things. Is it trying to masquerade as them in everything but substance?

Much of what is bought by the poor has no VAT added. I.e. market stalls etc don't charge vat.

True, but unless the market stall imports stuff directly from China, they buy their stuff wholesale at a bigger store, and that store does charge VAT, so the market stall suddenly has to pay 3% more for their stuff and will therefore raise prices at the stall by 3%.

Same goes for foodstalls, they may not charge VAT, but they buy most of the food in TESCO or similar who adds VAT, which means the food stall owner has to increase prices accordingly.

The food you buy in thr market is bought from wholesalers . there is little or no vat on fresh produce in markets.

I was just saying that it isn't as simple saying vat hurts the poor.

Unprocessed food is vat exempt anyway as are fertiliser pesticife and other essentials for food production. So, a 3% increase shouldn't have a significant change in the market. It wi in 711 and Tesco but not the noodle standm

[Thai at Heart]

Didn't they recomment only a month ago that there was no need for an increase

Well, since you brought it up and no one seems to have answered or know the answer, maybe you should check and report back to us?

BTW didn't they suggest that due to a weak financial situation the taxpayer base had to be broadened, the source of income of the state increased?

http://www.thaivisa.com/forum/topic/767207-thai-finance-ministry-proposes-to-raise-the-vat-rate-to-10-percent/page-3#entry8514580

I remember them saying it only a month or so ago. Its too hard to search. They need to broaden the tax base. Probably the biggest income tax payers are farangs on big packages in Thailand.

It would only bebfair that the Thais pay a bit too.

[Pib]

Let’s see if VAT went from 7 to 10% here are some things that would see price increases in my daily life since VAT is applied to these items.

Fuel for the car/truck

Insurance on the car/truck

LPG cooking gas

Groceries at Makro, Tesco Lotus, Big C, Foodland, Tops, etc.

Clothes and other basic necessities bought at places like Big C, Lotus, etc.

Fast food at all those fast food places/restaurants like KFC, MK, Food Courts, etc.

Electric Bill

Water Bill

Telephone Landline Bill

Cell Phone Bill

Internet Bill

True Visions Cable/Satellite TV Bill

That's enough listing of VAT affect items for...I now have a better idea of how increase VAT will affect me. And I expect others who have some of above bills will be impacted…"I expect even poor/lower income people incur some of these bills."

And of course when bills like above rise, people who sell things that VAT may not apply to will still just raise their prices of those items to cover the VAT rise in other products/services.

[tbthailand]

Let’s see if VAT went from 7 to 10% here are some things that would see price increases in my daily life since VAT is applied to these items.

Fuel for the car/truck

Insurance on the car/truck

LPG cooking gas

Groceries at Makro, Tesco Lotus, Big C, Foodland, Tops, etc.

Clothes and other basic necessities bought at places like Big C, Lotus, etc.

Fast food at all those fast food places/restaurants like KFC, MK, Food Courts, etc.

Electric Bill

Water Bill

Telephone Landline Bill

Cell Phone Bill

Internet Bill

True Visions Cable/Satellite TV Bill

That's enough listing of VAT affect items for...I now have a better idea of how increase VAT will affect me. And I expect others who have some of above bills will be impacted…"I expect even poor/lower income people incur some of these bills."

And of course when bills like above rise, people who sell things that VAT may not apply to will still just raise their prices of those items to cover the VAT rise in other products/services.

Thai people I know who could be considered poor get hit with all of those items except the landline, internet, the Sat TV. And they don't take out insurance on the motorbike.

[HiSoLowSoNoSo]

At the same time they think investors will come here and set up shop. Most investors are looking for low taxes and import duties and stability.