Prayut invokes S44 to keep VAT at 7%
Bangkok Post2 Nov 2016
Prime Minister Prayut Chan-o-cha has exercised his special power under Section 44 of the interim charter to extend the 7% value-added tax (VAT) rate for another year.
The extension order, which was published in the Royal Gazette yesterday, will be retroactive to Oct 1.
The 7% tax rate, which has been extended several times, was set to expire on Sept 30.
Director-general of the Revenue Department Prasong Poontaneat said without the prime minister’s Section 44 order, VAT would have increased to a 10% rate.
The extension will last until Sept 30 next year.
VAT was first introduced in Thailand in 1992 at a rate of 10%, but was immediately slashed to 7% at the request of businesses.
The rate has been kept at 7% ever since.