BANGKOK, Sept 11 (TNA) – The Cabinet agreed to retain the 7%
value-added tax (VAT) rate for another one year to September 30, 2020.
The Finance Ministry proposed to keep the VAT rate unchanged for
one more year to help people shoulder the burden of the high cost of living and
build confidence among business operators as well as to promote the economic
growth.
The decision to maintain the VAT rate will also support economic
and social stabilization.
The value- added tax or VAT is a tax on the sale of
goods or the provision of services. It is also collected by the Customs
Department at the time goods are imported.
Finance Minister Uttama Savanayana said VAT
collection earlier fell short of the target due to the economic slowdown and
the stronger baht, which contributed to a drop in value of imported goods.
However, he said in the latest report of the Revenue Department,
VAT collection in August increased 4.4 per cent year-on-year, showing a sign of
rebound in domestic consumption. (TNA)
