Govt rejects co-payment accusations
Subsidy not a VAT ploy, says Pornchai
The Finance Ministry on Monday denied that the government’s “Khon La Khrueng” co-payment subsidy scheme was a tool to tax small vendors.
Pornchai Thiraveja, director of the Fiscal Policy Office (FPO), said operators, regardless of whether or not they join the co-payment scheme, are legally required to pay income tax if their earnings reach a certain level.
He said the amount owed will depend on their net income after deductions including operations costs and personal expenses. However, those whose incomes remain below a certain threshold with remain exempt.
The clarification came after a number of participating vendors complained of being charged back tax…
