CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Thailand Pulls VAT Hike Plan

Thailand Pulls VAT Hike Plan

by Mary Swire, Tax-News.com, Hong Kong

04 December 2014


Thailand's Government has backed away from its plans to raise the value-added tax rate late next year, after lawmakers sided with business leaders who said the economy is too fragile.

The Government had said that increased spending was required to boost the economy's prospects, while acknowledging that this would lead to an increased budget deficit in 2015. To counteract higher spending, the Government had proposed raising the value-added tax rate by one percent.

Thailand's headline value-added tax rate is, in theory, ten percent. However, a seven percent rate has been in force since 1999. This seven percent rate was extended again in July this year, until at least September 2015, on account of civil unrest in the nation and a slowing economy.

Thai media outlets took the Government's announcement to mean that the rate would be increased on top of the introduction of the ten percent rate from late next year. Instead, it is thought likely that the Government had instead intended to raise the rate to eight percent, while extending the waiver from payment of the ten percent rate, as it has done for more than a decade.

Nevertheless, the Government's plans were quickly retracted, with businesses arguing that the Government should wait until 2016, when the economy is expected to exit a period of stagnant growth and instead post stronger growth rates nearing four percent of gross domestic product.

TAGS: VAT rates | tax | business | value added tax (VAT) | law | budget | Thailand

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »