Sirikanya Tansakul, deputy leader of the People's Party (PP), criticised the government on social media for failing to clarify its position regarding reports of a proposed value-added tax (VAT) hike.
On Saturday she was responding to Suksit Srijomkwan, the prime minister's deputy secretary-general for political affairs, who defended Prime Minister Paetongtarn Shinawatra amid growing speculation about the VAT increase.
Mr Suksit claimed the prime minister was working to dispel misunderstandings about the issue and accused Ms Sirikanya, whose party advocates for a welfare state, of obstructing tax reform.
Ms Sirikanya countered in a post on X, saying she had appeared in multiple forums over the past week to discuss the VAT issue. Despite this, she was accused of hindering reforms.
She acknowledged that VAT, a significant source of government revenue set at 7% since 1999 despite a legal ceiling of 10%, might require an increase. However, she argued any hike should be gradual, capped below 15%, and accompanied by measures to mitigate economic impacts.
Prime Minister Paetongtarn, she said, failed to adequately address the issue when questioned by the media on Thursday. Instead, the prime minister posted on X the following day, asserting there were no plans to raise VAT to 15%.
Earlier, Finance Minister Pichai Chunhavajira faced backlash after proposing at a forum to increase VAT to 15% while simultaneously reducing corporate and personal income taxes to enhance state revenues, improve competitiveness, and reduce economic disparities.
Ms Paetongtarn later dismissed the proposal, saying no such VAT adjustment was under consideration.
Ms Sirikanya criticised the government's poor communication, warning that it undermines efforts to reform the tax structure.
Separately, Charnnarong Buristrakul, chairman of the Khon Kaen Chamber of Commerce, said the government might consider raising VAT to address urgent issues such as flood rehabilitation. However, he cautioned that any increase should be limited to 10% due to the economy's vulnerability.
Sirikanya Tansakul