Posted by An Observer in
Social & Politics on 02 13th, 2007 |
4 Comments
VAT may rise to finance new budget deficit
The value-added tax, fixed at 7% since the 1997 economic crisis, will eventually be increased once the economy improves, according to Sommai Phasee, the deputy finance minister. But he stressed that policymakers had no intention of raising the value-added tax (VAT) at this time.
''But in the future, Thailand will have to increase the tax rate to ensure that state revenues cover expenditures,'' Mr Sommai said.
State revenues currently stand at 16.8% of GDP, sufficient to meet existing public investment and spending requirements.
But Mr Sommai indicated that revenues should eventually be raised to 18% of GDP to help meet future spending requirements. Tax rate increases would be made in gradual steps, he added.
full (stupid) details:...