PM Prayut: Tax structure revamp necessary to provide for future governments

[webfact]

Gen. Prayut: Tax structure revamp necessary to provide for future governments

BANGKOK, 24 March 2015 (NNT) – Prime Minister Prayut Chan-o-cha asserted on Monday that a revamp of the tax structure is necessary, while the government will only raise the VAT rate when the time is right.

General Prayut said the revamp of taxation was necessary as it would provide future governments with additional tools for reducing disparity and fostering fairness. The value added tax (VAT) is a tax that allows every member of the public to contribute to national development. He added that the VAT rate would only be raised under appropriate circumstances.

According to General Prayut, the less-than-expected amount of revenue collected by the state partly has to do with the decline in exports. Exports, which make up as much as 70% of the country's GDP, has contracted in line with the global economy. He also noted that Thailand's manufacturing cost is higher than her competitors'.

The government's working team on economic affairs has been performing well, but improvements have to be made in the aspect of disseminating information to the public, Gen. Prayut added.


-- NNT 2015-03-24

[15Peter20]

Hasn't he already been forced to curb or abandon plans for inheritance/land/property tax?

Looks like seizing control of a country is easier than extracting tax from those with most to lose from it.

Edited March 24, 2015 by 15Peter20

[trogers]

Land is a natural resource that heavily affects economic production of a country. Those hoarding land have to be taxed on the assumption that the hoarded land is contributing to economic productivity, meaning being rented out for an economic activity.

[recycler]

It's time for Robin Hood to make some revisions of the financial structure of Thailand!

[manarak]

Dear Mr. General, boss, consider this:

Don't touch the VAT, or better scrap it completely.

VAT tax administration is a huge apparatus that costs a lot of money - the resources could be used more efficiently elsewhere.

Don't do a land tax, unless it's limited to very large estates, and don't do an inheritance tax unless provisions exist to preserve some wealth items, such as substantial shareholdings, indivisible real estate, etc.

Rather do the following:

- a sensible progressive personal income tax up to 30% of income

- a wealth tax (includes land tax and inheritance tax!!)

- a progressive company income tax up to 30% of income

Edited March 24, 2015 by manarak

[manarak]

Land is a natural resource that heavily affects economic production of a country. Those hoarding land have to be taxed on the assumption that the hoarded land is contributing to economic productivity, meaning being rented out for an economic activity.

Then surely the perceived rent should be tax free?

What do you do with people owning a park and maintaining it for free?

I much prefer a sensible wealth tax where real estate is included rather than have rich and poor pay a land tax, which would act as yet another barrier to people owning land.

Edited March 24, 2015 by manarak

[Balance]

The vat tax is regressive, meaning that it has a much more negative impact on low income people that higher earners. Vat, or sales taxes, work if the regressive aspects for basics are removed. So food items would be exempt from any VAT, but a "luxury" surcharge would be added to Rolex watches, as an example.

[Srikcir]

"General Prayut said the revamp of taxation was necessary as it would provide future governments with additional tools for reducing disparity and fostering fairness."

WHY?

Surely future [elected] governments can decide taxation policies and tools if and when they're justified and supported by the majority without the Junta setting taxation policies and laws in stone now. And maybe that's the answer. The Junta does not intend for future governments to have any ability to affect their own taxation policies. After all, when the Junta reforms something, it stays REFORMED.