BANGKOK, Aug 24 (NNN-Bernama) – Thailand’s cabinet has agreed to maintain the value-added tax (VAT) rate at seven per cent for another two fiscal years, in a bid to support the kingdom’s economic recovery.
The VAT rate has been at seven per cent since the 1997 Asian financial crisis.
Deputy government spokesperson Rachada Dhnadirek said Prime Minister Prayut Chan o-cha, who chaired a cabinet meeting Tuesday, has agreed to retain the VAT rate until Sept 30, 2023.
“The unchanged VAT rate will not affect the government’s revenue projection in the fiscal years 2021-2022 and 2022-2023 as the calculation is based on a seven per cent VAT rate,” she said at a press conference, here, Tuesday.
Thailand is facing an uphill battle to contains its worst COVID-19 outbreak as it recorded 1,055,088 COVID-19 patients and 9,788 fatalities since the start of the pandemic in January last year.
Last month, Thailand’s main economic planning body, the National Economic and Social Development Council (NESDC), slashed its 2021 economic growth forecast to 0.7-1.2 per cent from 1.5-2.5 per cent in the previous projection in May.
Thailand’s economy contracted by 6.1 per cent in 2020 due to a decline in external demand affecting trade and tourism, supply chain disruptions, and weakening domestic consumption.
— NNN-BERNAMA