PM Prayut floats idea of raising VAT to 8%

[12DrinkMore]

17 hours ago, NCC1701A said:

I wish I owned a country.

Banks are much better.

[12DrinkMore]

3 hours ago, webfact said:

floated the idea of raising the value added tax

 

He can promptly sink this nonsense.

[GarryP]

14 hours ago, Chang_paarp said:

The current 7% came about as part of the response to the Asian collapse in the '90's. I was under the impression that the rate was increased just before  the collapse but not enacted when the need to reduce it back to 7%, it has to be reviewed every 12 months. If VAT was levied at 10% it was only for a brief period as there were lots of vested interests trying to prevent the rise.

Of course collecting the VAT from all parties who should pay is another story.

I think you may be right on that. I do recall that the original rate was 10 percent but it was quickly reduced to 7 and is reviewed from time to time.

[12DrinkMore]

28 minutes ago, Emster23 said:

" He urged the public to help shoulder the burden so that the government has more financial resoruces to implement projects requested by the majority of people. "

 I could never be a politician: couldn't suppress the giggles and smirks if I said such a statement as this one. Anyone recall the majority of people requesting submarines, high speed trains to Hua Hin? Was I away at the time?

VAT taxes are about as regressive a form of taxation as you can find. How about some real estate taxation? Say any real estate valued about 4 million? Have the well to do shoulder some of this burden.

 

Turkeys never vote for Christmas.

[klauskunkel]

PM's decision process:

problem - need more money.

solution 1) collect tax from Shinawatras, really stamp out corruption for real this time no excuses and apply for everyone really, curb idiotic government spending

solution 2) raise the VAT

hmmm, requirements for number 1) work, dedication, oversight, ethics, common sense, meetings, committees, article 44

requirements for number 2) ....

I Know what to do, time to float something

[Eric Loh]

More evidence that the junta government is running out of money. The 2% increase in defence spending and the salary increases to NLA members are all coming back to roost. The next government will inherit an empty treasury.

[mtls2005]

It sounds like they prefer to leave this increase to the next "government".

[Sydebolle]

Well, start with reducing expenses as Thailand has ferocious pricing on alcohol, vehicles and school fees are income taxable. 

Get rid of 50% of the public servants poking noses and being a nuisance and a slow-down to anything and maybe check the real threat in the Golf of Thailand and you'll see, that NOBODY has, needs or wants submarines or aircraft carriers. The latter is a monument of corruption, incompetence and zero law enforcement. 

Welcome to Thailand; I for one am getting ready for the sunshine tax ;-) 

[Krataiboy]

They're running out of money, ideas and credibility. The sooner elections are held and a government elected which can be held accountable for its actions the better.

[mtls2005]

7 minutes ago, Krataiboy said:

They're running out of money, ideas and credibility. The sooner elections are held and a government elected which can be held accountable for its actions the better.

 

Yes, this might be the only reason the Junta gives up power.

 

Half-expecting them to hold snap elections, just to get off the hook. Then wait  a year or two and seize power again because the "politicians" screwed up.

[realenglish1]

VAT is a regressive tax and not good for the poor Find a better way so people working pay it not the poor and idle 

 

Better still wait till the so called newly elected government is in place Let then decide about it 

[Srikcir]

19 hours ago, webfact said:

to raise an additional Bt100 billion in annual tax revenues to finance various public projects.

Increased VAT may not be the best solution.

 

Combined tax collection for 2017Q1 fell short of target by 1.1% with the greatest shortfall by a factor of ten in Customs Tax. But thereafter, there will be the new excise tax regarding environmental conservation and increased tax for non-alcoholic sugar content drinks. Also predicted higher car sales will too generate greater excise tax.

http://englishnews.thaipbs.or.th/three-tax-departments-told-improve-tax-collection/

 

Thailand imports for January 2017 fell below the previous five months to a level in July 2016. http://www.tradingeconomics.com/thailand/imports

 

That suggests that there is a more fundamental financial problem that needs attention as opposed to simply increasing VAT by about 1.4%. The combined inflationary effect caused by increasing VAT and increase in unemployment (primarily in the Northeast region) will not help raising more discretionary government spending and may further damage GDP growth. Of course the government could also consider cost-saving solutions such as cutting back procurement and reducing the overall cost of government (notably where active military serving in the government is making multiple pay).

 

 

[robblok]

I read somewhere that Prayut wanted to people to sacrifice for the country and accept the 1`% vat raise.. why does the navy not sacrifice for the country and cancel those subs ? The military budget does not always have to up.. it can go down too. I guess its always easier to look at others to make sacrifices. 

[Monkeyrobot]

19 hours ago, NCC1701A said:

I wish I owned a country.

I think Syria is up for sale at a bargain price. 

[PaulBraveheart]

[elgordo38]

If he is "floating" the idea its a done deal. He needs the extra funds to get his subs in the water and make them float sorry dive. 

[elgordo38]

Just now, PaulBraveheart said:

Closer to the truth. It would be more palatable if the PM did stick a gun in our face. 

[elgordo38]

1 hour ago, realenglish1 said:

VAT is a regressive tax and not good for the poor Find a better way so people working pay it not the poor and idle 

 

Better still wait till the so called newly elected government is in place Let then decide about it 

Yeah gads is this National Truth Day again??

[jerojero]

And why is this? Because he's spending billions upon billions with reckless abandon. Maybe he should buy 10 submarines and New quadruple railways. The country's run out of money.

[Destiny1990]

I think its good plan.But where will the extra money be spend on?

[manarak]

bad plan. low VAT is key to a healthy budget.

Western countries with high VAT are all too dependent on the economy for financing the state.

[daveAustin]

I don't see any improvements made under this 'government', just greater control and more expense. Should I have expected anything different?

[GarryP]

The government is now claiming it is fake news. 

 

Actually, I quite like that. Throw some idea out to the masses and wait for the response. If negative, claim it was fake news. If there is little or no response, proceed with the plans. 

[mike324]

21 hours ago, Shawn0000 said:

 

The import duty on a coffee maker is 30%, as it also is on blenders and many other household appliances, this not to prevent stealing business from the coffee venders or smoothie venders, but to allow Thai manufacturers of household appliances the chance to compete with cheap Chinese imports.  The UK did not do this, the duty on the same items is 3.3% and we have lost the majority of our manufacturing to overseas.  The simple answer, by a Thailand made coffee maker.

Import duty on many items are not too bad, its the importers who are ripping consumers off not the government in most cases by charging 2-3x the price.

[hocuspocus]

23 hours ago, mike324 said:

Making citizens pay? nope .... that amount can be easily raise by curbing corruption - stream lining procurement process and cutting number of civil servants playing on fb and sleeping during work. I guess no politicians in Thailand can change until education improves.

If majority of the working population were paid a decent wage then there would be more income tax revenues and less need to raise VAT, but instead most of the population are on the minimum wage of 300 baht a day (if they are lucky) and now the unelected government want to squeeze the lower paid with 15% increase in VAT. It will not affect the ex-pats too much as we are used to higher VAT. What about two tier VAT rates one for Thais and one for foreigners ( I am only joking).

[jackted]

Increase VAT.....why not? Since you`ve depleted the treasury reserves. 

 

Need the money for those subs to prevent attack from....err....err

 

And all those huge projects. But if you do get all that extra revenue could you spare a bit for all the bloody potholes on the roads to my village?

[mike324]

57 minutes ago, hocuspocus said:

If majority of the working population were paid a decent wage then there would be more income tax revenues and less need to raise VAT, but instead most of the population are on the minimum wage of 300 baht a day (if they are lucky) and now the unelected government want to squeeze the lower paid with 15% increase in VAT. It will not affect the ex-pats too much as we are used to higher VAT. What about two tier VAT rates one for Thais and one for foreigners ( I am only joking).

The problem with tax collection is that many businesses cook their books and buy receipts to show "losses". They need to do a even better job at cracking down. Not only that, many of the government procurement are overpriced. Thailand has high budgets for many of its ministries, its just being misused all the time.

 

The problem is not with people's wages, most of the population are not on minimum wage due to shortage of labor. 

[snoop1130]

Prayut lambastes media over VAT-hike report

By The Nation

 

 

Prime Minister Prayut Chan-o-cha on Friday blamed local media for reporting incorrectly his intention to increase the value-added-tax rate from 7 per cent to 8 per cent. 

 

He said some media had distorted what he had said on Thursday. He said he just wanted to explain the gap between tax revenue and people’s demand for government support.

 

Source: http://www.nationmultimedia.com/news/business/30308577

 

-- © Copyright The Nation 2017-3-10

[yellowboat]

12 minutes ago, snoop1130 said:

He said some media had distorted what he had said on Thursday. He said he just wanted to explain the gap between tax revenue and people’s demand for government support.

He is just so misunderstood.  Perhaps they should have an election and elect somebody who is easier to understand. 

[Dap]

So those submarines took out too big a chunk eh?