Connect with us

Thailand

Govt urged to defer increase in VAT

Published

 on 

PHUKET MEDIA WATCH

– Thailand news selected by Gazette editors for Phuket’s international community

Govt urged to defer increase in VAT
The Nation / Phuket Gazette

PHUKET: Thailand’s leading private organisations are urging the government to delay the planned increase in value-added tax next year, saying that Thais will not be ready to pay more during what is expected to be a slow economic recovery.

In an attempt to convince the government to defer the VAT hike, the the Joint Standing Committee for Commerce, Industry and Banking agreed at its recent monthly meeting to discuss the issue with Prime Minister Prayut Chan o-cha.

Business operators and the private-sector standing committee expect the Thai economy will grow by just 3.5-4 per cent next year, lower than the previously forecast range of 4-4.5 per cent, said Supant Mongkolsuthree, chairman of the Federation of Thai Industries.

If the economy does not grow above 4 per cent next year, then the government should consider delaying the VAT increase, as it could affect consumer spending power, he said.

The government may just be wanting to “see how the wind blows” by saying that it will increase VAT, but it may not raise it in the final analysis, he added.

“The Thai economy will show a clearer sign of recovery after the second quarter next year following the government’s infrastructure investment, which will start to be effective and inject funds into the economy. The government should, therefore, delay increasing VAT for a year,” he suggested.

His comments came after the Prayut government announced that it planned to increase VAT by at least 1 percentage point in October next year. The current rate is 7 per cent.

Somkiat Anuras, vice chairman of the Board of Trade of Thailand and the Thai Chamber of Commerce, said he disagreed with the proposed hike as the Kingdom still faced weak consumer spending power.

The government should wait for a while, until the economy has grown more strongly, he suggested.

Boontuck Wungcharoen, chairman of the Thai Bankers’ Association, said the government should carefully consider whether to increase VAT as consumer purchasing power was still not strong.

He pointed out that household debt had been rising, while spending on durable goods remained low.

For next year, the private sector foresees the tourism sector growing by 7 per cent, while exports are forecast to expand by 3 per cent.

Overseas shipments next year should grow mainly due to the economic recovery in the United States, but there is still risk in Japan, he said.

The committee projects that the Thai economy this year will face a contraction of 1 per cent, or at best grow by just 1 per cent, due partly to the need to make payments of Bt1,000 per rai (0.16 hectare) to rice and rubber farmers.

Meanwhile, the panel supports the government’s planned promotion of Thailand as a hub for corporate regional headquarters, because such a move would increase employment opportunities for Thais, and stimulate the MICE (meetings, incentives, conventions and exhibitions) industry and tourism-sector growth.

The panel will gather more ideas from the private sector and make proposals to the government at a later date.

It will also set up a working committee to study which business-related laws require amendment, and then submit proposals to the National Legislative Assembly.

— Phuket Gazette Editors

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Thailand11 hours ago

Cabinet seems to have ignored 4am nightlife proposal

Video12 hours ago

THAILAND NEWS TODAY | Korean woman arrested for 5-million-baht theft, 6-year overstay

Crime13 hours ago

Tuhao’s Chinese gang buys 50 homes in Bangkok luxury village with cash

Sponsored14 hours ago

Krungthong Plaza offers endless choices of well-selected plus-size fashion products

Road deaths13 hours ago

Bus flipped in Tak injuring 44 Burmese workers, killing 3

Thailand13 hours ago

3 men were arrested for stealing Thai Internet connection & World Cup betting in Cambodia

Pattaya13 hours ago

Intoxicated Pattaya woman left uninjured after overturning car

Join the conversation on the Thaiger Talk forums today!
Crime14 hours ago

Woman who allegedly scammed victims for over 30 million baht arrested in Pattaya

Bangkok14 hours ago

Bangkok BTS Skytrain fares to increase next year

Thailand14 hours ago

Police put brakes on car rental thief in Bangkok

World14 hours ago

New drug marks major milestone in slowing Alzhemier’s

World Cup15 hours ago

400 to 500 migrant workers in Qatar died due to World Cup, not 6,500

Visa16 hours ago

Thailand advises Indians to obtain visa prior to travelling to avoid long queues

Thailand16 hours ago

Driver furious with Bangkok shopping mall after foreigner accidently causes damage to her car

Politics16 hours ago

Iran promises Thailand it won’t attack Israeli tourists

Crime16 hours ago

Korean woman arrested for 5 million baht theft, 6-year overstay

Thailand1 year ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand2 years ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 years ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 years ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 years ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending