Khon Kaen Chamber President Suggests VAT Increase Should Not Exceed 10%

• The chairman of the Khon Kaen Chamber of Commerce revealed that any increase in VAT should not exceed 10% to minimize the impact on the cost of living
• The current VAT rate in Thailand is 7%, which is lower than the global average of 15-25%
• The government’s idea to increase VAT is seen as a way to generate revenue following expenditures on flood relief and welfare
• There have been thoughts since 1997 about setting VAT at 10%
• The chairman suggests that the state should adapt by using various tax mechanisms to enhance the country’s competitiveness
• High-value industries and high-value tourism should be promoted to increase revenue
• The majority of the budget is currently spent on infrastructure, with insufficient investment in high-value industries
• The chairman also mentioned that state spending is slow, leading to money being tied up in the treasury and sometimes spent unnecessarily
• Given the fragile economic conditions, with growth decreasing from 9% to 2%, and the high cost of living, VAT should be kept at 10%

Source: thaipost.net

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.

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