- The Prime Minister of Thailand, Paetongtarn Shinawatra, is concerned about the Finance Ministry’s proposal to increase the VAT from 7% to 15%
- Finance Minister Pichai Chunhavajira stated that the ministry is currently studying the possibility of this VAT increase
- The study includes examining global tax trends and assessing the potential benefits and drawbacks of a VAT increase
- VAT has been at 7% since 1992, and there have been suggestions to raise it to 10% in the past
- Public feedback is considered essential before any specific VAT increase figure is decided
- At the Sustainability Forum 2025, Pichai discussed global tax trends, including the OECD’s guideline of a 15% corporate income tax, suggesting Thailand might reduce its current 20% rate
- Pichai also mentioned the global competition in personal income taxes, noting that while other countries have reduced rates, Thailand’s remains high at 35%
- He highlighted the need for adjustments in Thailand’s tax system, particularly the low personal income tax base and high consumption tax base
- Pichai argued that a reasonable increase in VAT could help narrow the wealth gap and increase government revenue for public services and infrastructure
- The government is also considering ways to increase savings in an aging society
Source: bangkokpost.com
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.
