Finance will ask Thai cabinet to delay VAT increase for another year

[webfact]

Finance will ask cabinet to delay VAT increase for another year



BANGKOK: -- The Finance Ministry is to propose the cabinet to maintain the 7 percent value-added tax rate which is due to end on September 30 for another year citing poor economy and negative consequences if the tax rate is to be increased to 10 percent, said Finance Minister Sommai Phasi today (Wednesday).

He added that the ministry would try to plug the loophole of VAT evasion widespread among small enterprises by making it compulsory for them to issue proper receipts for every transaction failing that they are liable to fine and/or imprisonment.

In the meantime, the minister said that consumers would be encouraged to demand proper receipts from stores for every purchase by introducing an incentive programme under which the receipts can be used in exchange for prizes through lot drawings.

Regarding the new land and properties tax, Mr Sommai said that the proposed bill would be ready in two months time.

In essence, the bill will require house owners in cities to pay land taxes but the tax rate will not be high, he assured, adding that the new tax law would earn the state an addition of 200 billion baht in taxes a year.

(Photo : Thai PBS File)

Source: http://englishnews.thaipbs.or.th/finance-will-ask-cabinet-to-delay-vat-increase-for-another-year


-- Thai PBS 2015-06-03

[Rooo]

How many businesses use the VAT scam& never pass it on, same as the 10% service charge.

[maoro2013]

I don't know how many small businesses will be able to issue receipts. Many of the small scale proprieters cannot read or write. I cannot imagine the mess if they are going to expect the small businesses to provide VAT returns.

[maoro2013]

I don't know how many small businesses will be able to issue receipts. Many of the small scale proprieters cannot read or write. I cannot imagine the mess if they are going to expect the small businesses to provide VAT returns.

[brain150]

Why should anybody pay tax anyway ?

If a country creates its own money [NOT a currency and NOT created from private banks !!!] taxes are completely unnecessary !!!

But the big guys won't like it :-)

[h90]

How many businesses use the VAT scam& never pass it on, same as the 10% service charge.

From the 10% service charge they pay the staff, I doubt someone would work for free.

There are exact regulations what must be on the invoice with VAT. If that is right they'll most probably pay the VAT (which isn't that much as they buy the product with VAT).

If it is an handwritten invoice most probably no VAT....

[baboon]

MORE tax increases in the pipeline? How long will it be until the Great Thai Public realise they are being charged northern European prices for often substandard goods, and not a very large selection at that, on their third world wages and start to get seriously pi$$ed off?

Edited June 3, 2015 by baboon

[IAMHERE]

Taxes are forced out of people at the point of a gun. From 7 to 10 percent is almost fifty percent increase, way too much. A true Value Added Tax would be closer to zero in my opinion.

[Srikcir]

Next time I buy food from a street vendor I will DEMAND a receipt!

[rubl]

Next time I buy food from a street vendor I will DEMAND a receipt!

You should already get it. It's the paper wrapped around your purchase

[Chang_paarp]

The legislated rate is 10%. It was reduced to 7% during the Asian financial crisis (started by Thailand's problems ) to "help the poor". Every year since the finance department has to go to the government of the day to get the reduction in VAT extended.