- Thailand’s Ministry of Finance plans to expand VAT to include small businesses earning less than 1.8 million baht annually.
- The initiative aims to increase tax revenue and address underreporting of income by businesses.
- A special VAT system with a lower rate, around 1%, is proposed for these businesses.
- The plan could generate an additional 200 billion baht in annual revenue.
- The goal is to reduce the budget deficit from 4.4% to 3.5% of GDP.
- Current tax revenue is 15.5% of GDP, down from a historical high of 17%.
- SMEs may face cost burdens due to VAT, affecting cash flow and requiring investment in accounting systems.
- There is a risk of retroactive audits, which could discourage new entrepreneurs.
- In Vietnam, Bac Lieu province is facing economic growth challenges, failing to meet targets.
- Bac Lieu’s growth rate was 6.39% in early 2025, below the 6.5% target for the first quarter.
Source: evrimagaci.org
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.
