The ruling junta has reaffirmed the former civilian government’s assurances there will be no increase to the value-added tax, or VAT, at least for one year.
Bad economic indicators made it unlikely the 7-percent rate would be changed, a stance repeated by the military’s chosen economic steward, Gen. Chatchai Sarikalya.
Gen. Prayuth Chanocha, Thailand’s de facto head of state, reportedly considered lowering VAT to stimulate spending until the decision was made yesterday to stay the course, Bangkok Post reported.
In April, speculation rose that officials would seek to raise the VAT, as the tax’s authorization expires later this year and will need to be renewed.
The bill authorizing the current 7-percent VAT expires Sep. 30.
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