The government has approved a proposal to impose a tax on tutorial schools, saying the centres make money from their activities so should be liable like anyone else.
Speaking after the weekly cabinet meeting Tuesday, Prime Minister Prayut Chan-o-cha said the cabinet agreed with the plan, proposed by the Education Ministry.
No details were to hand on how much they stand to be taxed, but revenue raised by tutorial schools is huge.
The Education Ministry says there are 1983 tutor schools across the country, attended by around 200,000 students after class. Students pay a total of 6-7 billion baht in fees every year to boost their chances of passing key exams in the school system.
The cramming schools, as they are known, have made some of their owners millionaires, but until now the centres themselves have been exempt from the need to pay taxes to the state.
Under the law, tutorial schools have been exempt from tax, as their activities were seen as being related to educational affairs. The government says it is now prepared to lift that exemption.
Announcing the change, Gen Prayut said any tutorial centres that generate an income from teaching and tutoring deserve to pay tax.
He did not believe imposing the tax would affect the schools.
The premier denied reports the government was imposing new taxes because it has run out of funds.
The government has come under fire for its plans to impose a land and buildings tax, to help overcome a 200 billion baht deficit.
Any budget approved by the government will be spent reasonably, Gen Prayut said, calling on the public to understand the importance of paying tax.
Meanwhile, Narong Pipatanasai insisted the taxes on tutorial centres would not cause fees to go up.
Thailand has regulations governing increases in education fees, he said.
Any hike needs to be approved by the Office of the Private Education Commission, which oversees tutorial schools and their education activities, he added.
Funds raised from taxes will be spent on Thais, Adm Narong said.
Meanwhile, the cabinet has also backed the drafting of a bill that would change the administration of Thammasart University and Khon Kaen University, which come under the Education Ministry, to a semi-private university.
Some students have opposed plans to transform Kasetsart University to a semi-private university in the past, saying they want it to stay wholly in the state sector.
Adm Narong said the issue was not new, so there was no need to create understanding about the change. He said the amendment was sought by the universities themselves.
Deputy Education Minister Kritsana Keeratikorn said documents will be forwarded to the National Legislative Assembly for scrutiny after the cabinet had passed the plan.