Thailand Plans VAT Increase to Boost Tax Revenue by 600 Billion Baht Amid Economic Challenges

• Thailand plans to increase VAT to boost tax revenue by 600 billion baht.
• Current tax revenue is 15% of GDP, lower than similar economies.
• The VAT rate is currently 7%, below the legal 10%.
• Any VAT increase must consider economic conditions and US tariff impacts.
• Additional revenue would reduce public debt and support the private sector.
• The government aims to reduce the budget deficit to 3% of GDP by 2026.
• Revenue growth could come from securitising state-owned assets and economic expansion.
• Investment-to-GDP ratio was 24% in 2024, with a goal to increase it to 30%.
• Challenges include attracting foreign investment and ensuring electricity and water supply.
• Raising the investment-to-GDP ratio could enable GDP growth of 4-5%.

Source: thethaiger.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.

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