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VAT increase can boost retirement savings: NESDC
The aim is to raise the VAT rate from the current 7% to 10%, with 3% of this increase being allocated as retirement savings for the population.
A recent survey revealed that 34% of elderly individuals have incomes below the poverty line, and 41.4% have savings of less than 50,000 baht. It is believed that this situation could be improved by converting the increased taxes into retirement savings.
According to Vorawan Plikamin, deputy secretary general of the NESDC, Thailand is gradually becoming an aged society, with an estimated 13.5 million elderly individuals accounting for about 20% of the population this year. By 2034, the elderly population is projected to reach around 18.38 million people, or approximately 28% of the total population and by 2040, the senior segment is anticipated to further increase to 20.51 million individuals, representing about 31.37% of the total…
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