- 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.
Latest Posts in "Thailand"
- How to Claim a VAT Refund in Thailand: A Step-by-Step Guide for Tourists
- How to Verify a Thailand VAT ID Online: Process, Importance, and Compliance Risks Explained
- Thailand Launches D-VAT & SBT Digital Platform to Streamline VAT and Business Tax Services
- Thailand Updates Input VAT Allocation Rules for Mixed and Out-of-Scope Business Activities
- Thailand Revenue Department to Expedite B160bn VAT Refunds for Business Liquidity
