BANGKOK: -- A rise in the value-added tax (VAT) to 10 per cent, scheduled to go into effect next year, has given rise to worries about inflation getting worse.
Revenue Department director-general Prasong Poontaneat said his agency stood to garner Bt201 billion more in tax revenue if VAT was increased to 10 per cent. However, the burden would be on consumers, who would end up paying more for goods and services.
These comments came after the National Council for Peace and Order (NCPO) announced that it would maintain VAT at 7 per cent for a year from October 1, 2014, to September 30, 2015, after which it would be increased to 10 per cent.
The reason is that it wants to boost domestic consumption and economic growth.
VAT is added to a product's price at every stage until it lands in the hands of the consumer, who pays the final tax. It was implemented in 1992 to replace the business tax. By law, consumers are required to pay 10 per cent VAT, but it was reduced to 7 per cent and several governments have maintained it at this rate for many years.
BANGKOK: -- A rise in the value-added tax (VAT) to 10 per cent, scheduled to go into effect next year, has given rise to worries about inflation getting worse.Revenue Department director-general Prasong Poontaneat said his agency stood to garner Bt201 billion more in tax revenue if VAT was increased to 10 per cent. However, the burden would be on consumers, who would end up paying more for goods and services.These comments came after the National Council for Peace and Order (NCPO) announced that it would maintain VAT at 7 per cent for a year from October 1, 2014, to September 30, 2015, after which it would be increased to 10 per cent.The reason is that it wants to boost domestic consumption and economic growth.VAT is added to a product's price at every stage until it lands in the hands of the consumer, who pays the final tax. It was implemented in 1992 to replace the business tax. By law, consumers are required to pay 10 per cent VAT, but it was reduced to 7 per cent and several governments have maintained it at this rate for many years.
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