Benja: No increase in value added tax
- Published: 29 Oct 2013 at 16.16
- Online news:
The Ministry of Finance has no plan to raise the level of value added tax (VAT) from 7% to 10%, this year or next, as was reported by some media, Deputy Finance Minister Benja Luicharoen said on Tuesday.
A VAT rise would further increase the cost of living, and it was not planned to happen this year or in the 2014 fiscal year.
Even though the VAT was initially set at 10%, it was collected at only 7%, the deputy minister said.
VAT was once raised to 10%, during the economic crisis in 1997, on the recommendation of the World Bank.
Value added tax was cut back to 7% after the economic situation returned to normal, Mrs Benja said.