Pridiyathorn foresees delay for VAT hike

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Pridiyathorn foresees delay for VAT hike

BANGKOK: -- Deputy Prime Minister MR Pridiyathorn Devakula said on Friday that the government may postpone an increase in value-added tax (VAT) by another year, due to sagging economic condition.

The VAT is now kept at 7 per cent. Without the government’s decision, the statutory level of 10 per cent would be applied in October.

He reiterated that the economic growth this year would be 4 per cent, due to an increase in public spending. Meanwhile, Thialand’s export growth should be limited at 2-4 per cent.

Source: http://www.nationmultimedia.com/breakingnews/Pridiyathorn-foresees-delay-for-VAT-hike-30256409.html


-- The Nation 2015-03-20

[Pib]

Since the 1999 crisis VAT has been reduced to 7% although the legal code sets it at 10%. Each govt has played the game of maybe I'll raise the VAT from 7%, maybe I won't. Each time the govt makes an announcement they will not be raising it for another year they probably feel like they are returning happiness to Thais when in fact all it means raising taxes always upsets a majority of the people and can hurt the economy which no politician wants. Someday when the Thai economy is going really good again, maybe the VAT will get raised a little but not until then.