Prime Minister Prayut Chan-o-cha has floated the idea of raising the value-added tax (VAT) rate by one percentage point from the current 7 per cent to 8 per cent to raise an additional Bt100 billion in annual tax revenues to finance various public projects.
He urged the public to help shoulder the burden so that the government has more financial resoruces to implement projects requested by the majority of people. He said businesses should not take advantage of a higher VAT rate and should avoid raising prices of goods and services.
According to the premier, the VAT rate has remained unchanged at 7 per cent for many years so it should be adjusted to bring in more tax revenues. However, he insisted that the government’s fiscal position remains sound.