DPM Somkid denies government plans to increase VAT

Deputy Prime Minister Somkid Jatusripitak assured on Friday that the government has no plan now to increase value added tax (VAT) by one percent from 7 to 8 percent as the economy is recovering and, therefore, untimely for tax adjustment.

Instead, he said the Finance Ministry is planning to extend the current 7 percent VAT rate for another year.

Mr Somkid pointed out that Thailand’s public debt accounted for just 44 percent of gross domestic product (GDP) which is much lower than 60 percent ceiling permissible for public debt.

Finance Minister Apisak Tantiworawong, meanwhile, said his ministry would propose the cabinet to extend the 7 percent VAT rate which is due to expire on September 30 for another year in order to help boost the economy.