Finance permanent secretary Somchai SujjapongseFinance permanent secretary Somchai Sujjapongse has rejected the National Legislative Assembly’s (NLA) proposal for a 1% increase in the value-added tax (VAT), saying it does not suit the present economic circumstances. A VAT rise was within the ministry’s purview, but any such decision would depend on the country’s economic situation and the state's financial position, he said. Although the 7% VAT was the world’s lowest rate, an increase could result in the economy stumbling. The NLA on Thursday proposed that VAT be raised by 1% and the additional revenue be reserved for education and health care. The VAT rate was set at 10% but the effective rate has been 7% since 1997.

Source: Bangkok Post May 19, 2017 06:33 UTC