Cabinet keeps VAT at 7% for another year
published : 3 Jul 2018 at 16:28
writer: Online Reporters
Cabinet has decided to keep value-added tax at the current rate of 7% for another year, from Oct 1 to Sept 30, 2019.
Nathaporn Jatusripitak, adviser to the prime minister's office minister, said the cabinet made the decision on Tuesday. The current 7% VAT rate will expire at the end of September.
What VAT was introduced in 1992 it was set at 10% but was slashed to 7% in late 1997 at the private sector’s request. It has been kept at that rate ever since, with the decision made each year.
Maintaining it at 7% would help curb the cost of living, boost consumption and promote private investment, Mr Nthaporn said.
It would cut the government's revenue opportunity by 258 billion baht in fiscal 2019, but the actual revenue target had been based on the 7% rate, so there would be no negative effect, he said.
The resolution also gave a clear direction to business operators, who could have confidence in their businesses and business plans, Mr Nathaporn said.