November 19 2012 Categories: Thailand Taxes No comments yet
Since the 1999 crisis the rate of VAT in Thailand has been reduced to 7% from 10%. The actual VAT rate in the Thai Revenue Code is still 10% but successives governements have for the past 13 years renewed every year the emergency decret which reduced the VAT to 7%.
Now Virabongsa Ramangkura, chairman of Prime Minister Yingluck Shinawatra’s advisory team, proposed raising by 1 percentage point the value added tax (VAT), which currently adds 7 per cent to the cost of consumer products. ”This would result in additional revenue of Bt60 billion for the country, which would enable us to ease other types of tax collection,” he said. I’m not sure if the Government would indeed give back another way what he would be taking in with an increase of the VAT but for sure with what successive governements have been spending in public utilities projects there will be a time where the government will have to find other sources of income and increasing the VAT is always an easy way for a government to collect money
Therefore it is not impossible that VAT be increased soon
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Originally posted 2012-04-28 20:58:20.