The right time to increase VAT?

The news recalls to mind the letter of intent signed with the IMF in which Thailand agreed to hike VAT in order to increase tax revenue after the 1997 economic crisis. That move so aggravated an already troubled economy that Thailand had to ask permission to cancel the deal.
Next year, Thailand’s economic growth is expected to continue as the lowest in Asean. As such, Thailand is currently working on restoring the confidence of the private sector in order to boost the economy. Increasing VAT will destroy that confidence because it will hit consumers’ purchasing power.
Indeed, consumers need to tighten their belts in these difficult economic times, but we must avoid taking measures that cause them and others to lose confidence in Thailand’s future prospects for growth.
Sutipunt Bongsununt