VAT Rate Reduction

[Thormaturge]

The government has announced a proposal to temporarily reduce the Value Added Tax rate from 7% to 6.3% with effect from 1 October 2014 until 30 September 2015.

The rate will then increase to 9% from 1 October 2015.

With growth still plummeting they really have little choice. The next thing you know they may have to give ThB 100,000 tax rebates on new car purchases.

[pseudolus]

increase to 9% from 1 October 2015.

blooming heck.

We can assume that they will not be in control by the time that poisoned chalice is handed to someone.

[Thormaturge]

^
indeed.

A simple increase from 6.3% to 9% might only look like "just 2.7%" to some, but it represents a 42.86% tax increase (2.7% as a percentage increase on 6.3%). Huge.

These rates are set by Royal Decree so I shall be interested to see whether there is a decree for the 9% rate, or merely an "intention" to apply for it.

[pseudolus]

It doesn't so much affect us as we don't have much outlay affected by VAT. Still, no matter that I am simply passing on the VAT passed to us from other firms, it still upsets me actually paying this over to the RD

[Albert Shagnastier]

Raising taxes across the board a little is the only solution for Thailand if it want's to improve infrastructure.

[Thormaturge]

^
Not to mention paying for free cinema tickets and visits to the zoo.