Indirect tax consequences of failure of broad tax reform

• The harmonization of the reduced 6% and 12% VAT rates into a new 9% rate, other than for certain specific supplies;
• The reduction to 0% of the VAT rate for fruit and vegetables, medicines, nappies and other products for intimate hygienic protection, and public transport;
• The retention of the 6% rate for electricity, natural gas, tap water, and heating for domestic use;
• The reduced VAT rate for demolition and reconstruction of a person’s sole residence would be made permanent;
• An increase of the excise duties on tobacco and new tobacco products as part of the anti-tobacco policy; and
• A reduction in existing subsidies for fossil fuel.

The proposal also includes measures to digitalize the VAT system by introducing e-invoicing and e-reporting, which would lead to simplified administration.

Source: taxathand.com

---

---