Thailand will not hike value-added tax as recommended by the International Monetary Fund, said Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong.
The IMF made the recommendation in light of the government’s plan to reduce corporate income tax rate to 23 per cent this year from 30 per cent. The decrease in corporate income tax is expected to sharply cut government revenue.
Thailand now slaps on only 7 per cent as VAT. After making a cut from 10 per cent a few years ago, any increase is the rate would meet strong public resistance.
“At 7 per cent, our VAT may be the lowest in the world but if the rate is hiked, goods and service prices would become more expensive and that would adversely affect consumers,” Kittiratt said on Thursday.
He also ruled out the possibility of introducing property taxes as well as taxes on the wealthy.