BANGKOK, Dec 6 (TNA) — Prime Minister Paetongtarn Shinawatra on Friday met her advisor team and confirms to the public that the government has no plan to increase VAT to 15 per cent after reports circulated that the government is considering a proposal to increase value-added tax (VAT), causing public outcry.
She said the Finance Ministry is still reviewing tax structure reforms to address social inequality and enhance competitiveness.
This morning, Ms Paetongtarn chaired a meeting with her advisory team which also joined by Deputy Prime Minister/Finance Minister Pichai Chunhavajira at Baan Phitsanulok, the working venue of her advisor team. The meeting took around two hours. Ms Paetongtarn, then, proceeded to work at Thai Khu Fah Building at the Government House at 12.22hr.
Later, she posted the messages via her social media platforms that the VAT will not increase to 15 per cent. The Finance Ministry is considering a comprehensive restructuring of the tax system, to ensure fairness, equality and the competitiveness of Thailand.
She assured that her government will proceed with tax restructuring cautiously and will take the views of all parties concerned into consideration. The government will consider the public interest as priority to mobilize the country for all.
Mr Sanan Angubolkul, Chairman of the Thai Chamber of Commerce and the Board of Trade of Thailand says as for the issue, we have to thank the previous government as the VAT must be adjusted to 10 per cent but it was delayed as the GDP growth was lower than two per cent during the past 10 years. As the GDP growth this year is expected to reach 2.8 per cent, it is too early to hike the VAT promptly. The government should upgrade the potential of the SMEs to have ability to enter the tax system. He says there are so many SMEs that avoid tax. The government should see the e-commerce that is not fully pay tax. This is considered a lot of money that should contribute to the economy.
Mr. Saengchai Teerakulvanich, president of the Thai SME says the increasing of the VAT at 15 per cent is not in tandem with the present economic situation particularly the high cost of living. The VAT increasing will put more burdens to the public. He says the VAT hike at 10 per cent is also not a proper move at the moment.
Mr. Somchai Jitsuchon, a research director for inclusive development at Thailand Development Research Institute (TDRI) posts messages via his personal Facebook page that the increasing of the VAT should be gradually done. The one per cent increases at the beginning and then gradually increase by another one per cent and so on. He warns that the move should not be announced in advance as it may cause the inflation expectation. The gradually VAT increasing should stop when it reaches 10 per cent. (TNA)
