- Thai restaurant industry warns that proposed VAT hike will burden businesses and drive inflation, raising living costs.
- Government plans to increase VAT from 7% to 8.5% by 2028 and to 10% by 2030 to reduce the budget deficit.
- Industry leader Sorathep Rojpotjanaruch urges reconsideration of the hike for specific sectors, especially restaurants.
- Restaurants face a double VAT burden as their main costs (agricultural products) are VAT-exempt, limiting input VAT deductions.
- Other countries often apply lower VAT rates for food and restaurants to protect consumers and support consumption.
Source: straitstimes.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"
- Thailand Plans Gradual VAT Increase to 10% by 2030 Under Fiscal Strategy
- Thailand’s e-Tax Invoice System: Digitalizing Business Documents with Voluntary Electronic Invoicing Options
- Finance Ministry Updates VAT Rules for Tax-Deductible Donations to Approved Organizations
- New VAT Rules: E-Donation System Required for Tax-Deductible Donations from 2021 Onward
- Thailand’s VAT Hike: Fiscal Necessity Demands Transparency, Targeted Spending, and Social Safeguards
