Cabinet agrees to keep VAT at 7% for another year

The Cabinet decided today (Wednesday) to retain the 7% value-added tax (VAT) rate on goods and services until September 30, 2024, to stimulate economic recovery through spending on consumer products and services.

Keeping it at 7% will be a relief for consumers and businesses alike, who were worried that VAT might rise to 10%, which would impact spending by consumers.

Thailand originally imposed 10% VAT on all goods and services, but this was cut to 7% on October 1, 2010. The rate is subject to review every two years.

Recently, the Fiscal Policy Office of the Bank of Thailand issued a statement, denying a press report that it was considering an increase to 10%.