- Deputy PM Ekniti proposes raising VAT from 7% to 8.5% in 2028 and 10% in 2030 to address rising public debt and budget pressures.
- Public debt is nearing the legal ceiling, and recurrent government spending is expanding, threatening Thailand’s credit rating.
- No government has raised VAT in 30 years due to fear of electoral backlash, but the increase is seen as inevitable to avoid deeper borrowing or social cuts.
- Public support for a VAT hike depends on government transparency, efficient spending, and clear plans for using extra revenue, prioritizing essentials like education, healthcare, and infrastructure.
- The government must also address tax evasion in the informal economy and implement measures to protect low-income households from the impact of higher prices.
Source: bangkokpost.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 to Maintain 7% VAT Until 2028, 10% Rate Unlikely Before 2030
