- The Thai government plans to eventually increase VAT to 10% as part of a fiscal capacity enhancement plan, but will not do so during 2025-2026 due to current economic conditions.
- The Medium-Term Fiscal Framework (2026-2030) includes a gradual VAT increase: 7% to 8.5% by 2028, and to 10% by 2030, depending on economic readiness.
- The fiscal plan focuses on tax reform, reducing government expenditure, using infrastructure funds for investment, and maintaining fiscal discipline.
- The goal is to reduce the budget deficit to below 3% of GDP by 2029, down from 4.4%.
- If the economy is not ready for a VAT hike, alternative measures such as increasing domestic revenue or cutting expenditures will be considered.
Source: kaohooninternational.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
