Thai Commerce Ministry disagrees with VAT hike during this period

[webfact]

Commerce Ministry disagrees with VAT hike during this period

BANGKOK, 12 January 2015 (NNT) - The Ministry of Commerce is closely monitoring consumer prices while the private sector is warning that the Thai economy this year is still making improvements. It therefore suggests that the government should not increase value added tax at the moment.

Commerce Minister Chatchai Sarikulya said he had instructed the Department of Internal Trade to review the costs of consumer products in each category. As for the decreasing global oil price, the minister said he believed it would lead to lower shipping costs. There would be more clarity in price decrease of some products such as lubricating oil within this week, said the minister.

Meanwhile, President of the Thai Chamber of Commerce Issara Wongkusonkit said the private sector was also closely monitoring consumer prices and it would lower the prices of some products in line with the market mechanism. He admitted that the overall economy of Thailand would continue to be dull for a while and remarked that the government’s idea to raise VAT from 7% to 8-10% would affect the people’s spending.


-- NNT 2015-01-12

[JOC]

The Ministry of Commerce is closely monitoring consumer prices while the private sector is warning that the Thai economy this year is still making improvements. <<

Yes improvements are a very dangerous thing!! Certainly we need to be warned!!

[chainarong]

The easiest way to lift the inflation rate is lift the VAT rate , this causes increase in prices inturn lifts the inflation rate , something at my age I don't worry about.

[Briggsy]

This VAT rise has been on the cards for a long time.

Is there such a thing as a taxpayer's alliance here to check the efficiency of government spending?

[dean008]

:-)

This VAT rise has been on the cards for a long time.

Is there such a thing as a taxpayer's alliance here to check the efficiency of government spending?

[somo]

They want want want, want a submarine now as it will increase their happiness. This is just a way to pay for some toys.

Edited January 12, 2015 by somo

[ScreamingEagle101]

This VAT rise has been on the cards for a long time.

Is there such a thing as a taxpayer's alliance here to check the efficiency of government spending?

For those red sympathizers among us, The billions of bhat lost on the rice scheme have to be paid for in some way and certainly the rich aren't going to pay their share. So, the anti-populist VAT tax will be hiked, ie. let the poor pay for what they have done. This is a clear message to the reds, there is no free lunch, unless you are tight with the boss.

[rickirs]

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This VAT rise has been on the cards for a long time.

Is there such a thing as a taxpayer's alliance here to check the efficiency of government spending?

Yes, it's called a military coup.

[h90]

They want want want, want a submarine now as it will increase their happiness. This is just a way to pay for some toys.

they cost nothing in compared to the rice scam and the other corruption of the previous government.

Lots of money is needed to repair that.

[rickirs]

While raising the VAT has been long discussed, at least since the previous military coup, the nation has enjoyed moderate to high GDP growth. Money essentially becomes "cheap" and increase in taxes are not a major economic burden to the taxpayers who are usually experiencing higher wages or profit margins.

BUT Thailand now has experienced negative GDP growth for 2014 and likely to have minimal growth in 2015. The nation is bordering on deflation. VAT hits mostly the low income and middle income classes and its increase now will further damage the financial stability of the nation. If there is a concern over inadequate government revenues, raise the income tax rates for the wealthy until such times as the GDP growth rate reaches 5% per annum. Call it a Sustainability Tax.