Sun, September 26, 2021

business

Cabinet agrees to keep VAT at 7% for another 2 years


The Cabinet on Tuesday agreed to maintain the VAT rate at 7 per cent for another two years from October 1, 2021, to September 30, 2023. The 7 per cent rate of value-added tax will be collected on sales of goods, services, and all imports (or 6.3 per cent excluding local taxes), said government spokesperson Ratchada Thanadirek.

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The rate will not affect revenue projections for fiscal years 2022 and 2023, because income estimates have been calculated in the budget preparation period.

Meanwhile, the Finance Ministry told the Cabinet that the 7 per cent rate will not affect revenue collection for fiscal years 2021 and 2022, since it has already been incorporated in the revenue projection.

Every 1 per cent hike in VAT increases the government's income by about 70 billion baht.

Published : August 24, 2021

By : The Nation