Controversies of 2012
Planned reductions in corporate and personal income tax are expected to cost the government upwards of 200 billion baht in tax revenue each year under a strategy aimed at encouraging investment, increasing disposable income and strengthening domestic demand.
Shoppers hunt for bargains in a Bangkok store. The current VAT rate, at 7%, ranks among the lowest in the world, and the cabinet will not have to consider whether to extend existing rates or allow VAT to increase to 10% as stipulated by law until 2014.
The long-standing corporate tax rate of 30% was cut to 23% in 2012 and will be cut again in 2013 to 20%. Overall, the Revenue Department estimates the impact of the tax reduction at 150 billion baht, based on returns for fiscal 2011.
This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.