Thailand Cabinet keeps VAT at 7% for another year
The Thailand Cabinet has decided to maintain the current value-added tax (VAT) rate at 7% for another year. This decision was announced by Jirayu Huangsub, an advisor to the Prime Minister of Thailand, at 12.40pm yesterday, September 17.
The announcement follows a Cabinet meeting where the economic situation was discussed, especially concerning the VAT rate set to expire at the end of this month. Despite earlier speculations about a potential increase to 11%, the Cabinet opted to keep the rate at 7%. This decision is viewed as a measure to stimulate the economy for both citizens and businesses.
This extension will be effective from October 1, 2024, to September 30, 2025.
The Thai Ministry of Finance estimated that maintaining the VAT rate at 7% will not result in additional revenue losses for the government. Jirayu stated that it will not affect revenue projections for the 2025 fiscal year, reported Pattaya News.
“The current rate is seen as beneficial for economic stability.”
An anonymous ministry source confirmed that the Revenue Department will amend the Revenue Code in line with the Cabinet’s resolution. Online sales platforms will now be required to register for VAT in Thailand and may also be subject to personal and corporate income tax.
In other news, Commerce Minister Pichai Naripthaphan called on the Bank of Thailand to slash interest rates and stabilise the baht in a bid to boost exports and prop up GDP.
In a policy statement issued today, Pichai slammed the current strength of the baht, which he claims is hitting exports hard. With export growth expected to be sluggish this year, he’s calling on the central bank to step in and tackle the currency’s soaring value.
