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Thai finance ministry has no immediate plan to increase VAT to 10%
The Ministry of Finance has no policy to increase value-added tax from 7% to 10%, to generate more revenue to fund old age pensions, according to Pornchai Theeravet, director of the Fiscal Policy Office and spokesman for the ministry.
His remark is in response to a report that the National Economic and Social Development Council has proposed several measures to increase support for pensioners, including a proposed increase in the rate of VAT.
Pornchai explained that, if VAT is to be increased, a law must be promulgated but, for the time being, the finance ministry has no plan to increase the tax.
Thailand imposed VAT in 1992, originally at 10%. In 1997, the government issued a Royal decree to reduce it to 7%,subject to review every two years. To date, the 3% cut has been extended every two years.
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