BHUMJAITHAI Party confirmed that the new coalition government is not planning to increase value added tax (VAT) to 10% for the next two to three years amid criticism that this is what is looming, Naewna newspaper said today (Feb. 23).
Mr. Siripong Angkasakulkiat, Bhumjaithai’s deputy leader, said concern about a VAT hike mounted after the Senate Committee on Economy, Finance and Fiscal Affairs proposed that it be gradually increased to 10%.
There have been discussions about improving the country’s creditworthiness as assessed by credit rating agencies by increasing revenue collection but this is definitely not happening in the next two to three years.
“The economy must improve first. When Thai people feel that the economy is doing well and growing then only do we talk in this manner,” he said.
Economic growth is not just about numbers with money having to circulate to various sectors and only when people feel that there is improvement will VAT adjustment be considered according to the procedure.
The government’s policy is to urgently revive the economy and get it moving with the primary goal being economic recovery not generating revenue through VAT, Siripong pointed out.
CAPTIONS:
Top and Front Page – Representative image of value added tax. Photo – PPTVHD36
Insert – Bhumjaithai Deputy leader Siripong Angkasakulkiat. Photo – Naewna
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