- Prime Minister Paetongtarn Shinawatra cancels plans to increase VAT from 7% to 15% after public and political backlash
- The decision followed a meeting with Finance Minister Pichai Chunhavajira and economic advisors
- The government faced criticism from various quarters including the deputy prime minister who initially proposed the VAT increase
- Paetongtarn acknowledged the negative impact the VAT hike could have on the public
- The Finance Ministry is considering other tax reforms to address social inequality and improve competitiveness but details are yet to be disclosed
- Proposals include reducing corporate income tax from 20% to 15% and personal income tax from 35%
- Opposition and coalition parties express concerns about the VAT increase, highlighting potential adverse effects on the poor
- Thailand’s tax-to-GDP ratio is around 17%, below regional and OECD averages
- VAT constitutes about 25% of Thailand’s total tax revenue as per OECD estimates
- Indonesia plans to increase its VAT to 12% next year
Source: bangkokpost.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Thailand"
- Government Dismisses Rumors of VAT Increase, Affirms No Plans to Raise Tax Rate
- Thailand’s VAT Hike: A Shift from Low-Cost Image to Value-Driven Economic Confidence
- Senate Panel Proposes VAT Hike to 10% to Address Rising Public Debt in Thailand
- Government’s VAT Hike Plan Faces Uncertainty Amid Energy Crisis and Slowing GDP Growth
- Thailand Tightens Customs Rules, Raising Parcel Import Costs and Protecting Local Businesses
