TDRI Urges Immediate VAT Hike to 8.5% to Address Thailand’s Budget Deficit and Fiscal Stability

• TDRI supports raising Thailand’s VAT from 7% to 8.5% in 2028 and to 10% in 2030 to address the budget deficit and strengthen fiscal stability.
• The VAT increase would boost state revenue, fund social welfare, and correct persistent deficits after years of stimulus spending.
• TDRI argues the government should not delay the VAT hike, as waiting for perfect economic conditions will only postpone necessary reform.
• The economist suggests the government can mitigate short-term consumer impacts and should focus on long-term restructuring, not repeated short-term stimulus schemes.
• The timing of Parliament dissolution has little economic impact but could have political consequences, such as affecting constitutional amendments.

Source: nationthailand.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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