thai cabinet extends

Thai Cabinet Extends 7% VAT Rate Until September 2027

ByJustpaste.in

BANGKOK — The Cabinet has approved an extension of the reduced value-added tax rate, keeping it at 7 percent for another year in light of current economic conditions, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas announced.

Thai Government Extends 7% VAT Rate for Another Year to Support Economy

The rate, previously set to expire at the end of September 2026, will now remain in place until September 30, 2027. The decision follows a government assessment that economic conditions are not yet suitable for an increase, despite earlier plans to gradually raise the VAT rate as part of the country’s medium-term fiscal framework.

Ekniti said the extension reflects the government’s cautious approach to tax policy during a period of global economic uncertainty. While Thailand’s economy has shown signs of recovery following the pandemic, growth remains uneven, and household debt levels are high. Raising the VAT rate at this juncture, the minister argued, could dampen consumer spending and slow the recovery.

The standard VAT rate in Thailand is legally set at 10 percent, but successive governments have kept it at 7 percent through cabinet resolutions and emergency decrees for nearly three decades, making the reduced rate effectively permanent in practice. Any move to raise the rate back to the statutory level would be politically sensitive, particularly with an election approaching.

The government has stated that it will continue to follow its medium-term fiscal framework, which includes plans to gradually raise the VAT rate as economic conditions permit. However, no timeline for such an increase has been provided, and the latest extension suggests that the 7 percent rate will remain in place for the foreseeable future.

For businesses and consumers, the extension provides certainty. Retailers can continue to price goods and services without the disruption of a tax increase, and households can budget knowing that the cost of everyday purchases will not rise due to VAT. For the government, however, the extension represents forgone revenue at a time when public finances are under pressure from high levels of debt and spending demands.

Thai PM Asserts No Plan to Increase VAT to 15%

The VAT extension is the latest in a series of measures aimed at supporting the economy while maintaining fiscal discipline. Whether the government will be able to raise the rate before the next election remains an open question. For now, the 7 percent VAT rate is here to stay, at least until October 2027. What happens after that will depend on how quickly the economy recovers — and how willing any government is to ask Thais to pay more.

-Thailand News (TN)

Similar Posts

  • Anutin Charnvirakul Secures Second Term as Thailand’s 32nd Prime Minister

    ByJustpaste.in

    BANGKOK — Anutin Charnvirakul has been re-elected as Thailand’s prime minister after securing a decisive parliamentary majority on March 19, paving the way for his second consecutive term at the helm of the Southeast Asian nation . Anutin Orders Thai Government Officials to Work From Home Amid Middle East Crisis The House of Representatives convened […]

  • Swedish Pop Star Zara Larsson Once Called Koh Lanta Home

    ByJustpaste.in

    KRABI, Thailand – Before she was a Grammy-nominated pop sensation with millions of streams and international acclaim, Zara Larsson was just a third-grade student attending school on the Thai island of Koh Lanta, a place she says raised her and shaped part of her childhood. The 28-year-old Swedish singer-songwriter, who has released five albums including […]

  • Thailand Administers Contraceptive Vaccine to Wild Elephants for Population Management

    ByJustpaste.in

    TRAT – For the first time, Thai wildlife authorities have administered contraceptive vaccines to female wild elephants as part of a new initiative to manage population growth and reduce human-elephant conflict. Park Rangers Search for Elephant Injured in Khao Yai Road Collision The Department of National Parks, Wildlife and Plant Conservation, in collaboration with Chiang […]

  • | |

    Bilawal vows to fight alleged poll rigging in AJK

    ByJustpaste.in

    Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari has accused the Pakistan Muslim League-Nawaz (PML-N), without naming the party directly, of relying on electoral manipulation to gain power and warned that his party would resist any attempt to rig the upcoming elections in Azad Jammu and Kashmir (AJK). Addressing a PPP workers’ convention in Muzaffarabad, Bilawal said the large turnout at the gathering showed that his party was heading towards victory in the August 2 elections. He urged party workers to remain active and mobilise voters, expressing confidence that the “arrow” — the PPP’s electoral symbol — would emerge victorious. Bilawal alleged that certain political groups had historically benefited from manipulated elections and now believed they could use the same tactics in AJK. He said the people of Kashmir would not allow such efforts to succeed and that PPP workers and voters would stand against any attempt to undermine the electoral process. Referring to his party’s political rivals, Bilawal claimed that their rise to power had often followed controversial election processes. He said the PPP had repeatedly faced electoral challenges but continued to win public support despite what he described as unfair political practices. The PPP chairman also raised allegations of rigging in the constituency of senior party leader Chaudhry Yasin. He claimed that polling agents and workers had reported irregularities at around 30 polling stations, alleging that the stations were occupied and votes were unlawfully cast. Bilawal said he had evidence regarding the alleged irregularities and called on the Election Commission to order immediate re-polling at the affected polling stations if it had no involvement in the alleged misconduct. He maintained that the PPP would accept defeat if voters rejected the party through a transparent and fair election. However, he said the party would not accept what he called a “stolen election” and would continue to challenge any result that emerged through alleged manipulation. Bilawal also pledged to fight for the restoration of what he described as the “stolen seats” of Kashmir and promised to pursue the rights of the people through democratic and constitutional means. He said the PPP wanted to secure ownership and political rights for the people of AJK through the power of the ballot rather than through armed struggle. He urged voters to support the party’s electoral campaign and vowed that the PPP would continue its efforts to raise the Kashmir issue at the international level. Bilawal said the Bhutto family and the PPP had worked for three generations to highlight the Kashmir cause globally, adding that his party would continue to advocate for the rights and aspirations of the people of the region through political and diplomatic channels.

  • | |

    Mir Raza exhumation halted over medical board row

    ByJustpaste.in

    The exhumation of Mir Ali Raza’s body has been postponed for Friday, his father’s lawyer Jibran Nasir said. Nasir spoke to the media and raised serious concerns over the medical board formed for the case. He said a third notification regarding the medical board had been issued. According to Nasir, the first and second medical boards were merged to form a new third board. However, he said the family does not accept the latest notification. He said Mir Raza’s parents had already recorded their statements before the investigating officer. Nasir said the family would not allow the exhumation to take place under the supervision of what he called a disputed medical board. He described the exhumation as a sensitive legal process. He said the court had directed the police surgeon and police to take necessary action. A medical team was formed after the court’s directions. However, Nasir alleged that the medical board was changed overnight. He said the sudden change had raised serious questions for the family. He questioned why doctors from Karachi were not included in the new board. He also questioned the removal of doctors who had been part of the earlier medical board. Nasir asked why a new board was formed without first withdrawing the previous notification. He also questioned why the new notification was issued during the night. He questioned the role of the Director General Health in Hyderabad. He asked under which law the official became the supervising officer of the medical board. Nasir also questioned how the orders of the Karachi police surgeon were superseded. He asked which order of the health secretary was referred to in the letter issued from Hyderabad. He said the family would not accept any alternative arrangement. They would only recognize the previously constituted eight-member medical board. Nasir also raised questions about the investigation into Mir Raza’s death. He said the investigating officer could not recover a bullet casing for eight days. According to him, the casing was recovered only after the family approached the court. He questioned how important the casing could be without the recovery of the pistol allegedly used in the incident. Nasir also alleged that the investigating officer had not properly inspected Mir Raza’s room. He said the family had lost a young member and wanted the case to be investigated with complete seriousness. He stressed that an exhumation was not an ordinary procedure. Meanwhile, preparations for the exhumation had been completed at the PECHS cemetery in Karachi. A police team had also reached the cemetery.

  • | | |

    Govt raises fuel prices as petrol pump strike thre…

    ByJustpaste.in

    The federal government has increased the prices of petrol and high-speed diesel, while petrol pump owners have announced a nationwide strike after failing to reach an agreement with the government over the newly introduced daily fuel pricing system. Under the latest notification, the price of high-speed diesel (HSD) has increased by Rs7.15 per litre, rising from Rs360.06 to Rs367.21. The price of petrol has also been increased by Rs4.93 per litre, taking it from Rs315.80 to Rs320.73. The revised prices came into effect on July 22. The increase follows the government’s decision to replace the previous fortnightly fuel price adjustment system with a daily pricing mechanism. Under the new policy, petroleum prices can now change every day depending on international oil prices and fluctuations in the exchange rate. The new pricing mechanism has been strongly opposed by petrol pump owners and fuel dealers. They argue that daily price revisions are difficult to implement and create financial uncertainty for retailers across the country. After negotiations with government officials failed, the All Pakistan Petrol Pumps Owners Association (APPPOA) announced an indefinite nationwide strike beginning at midnight on Wednesday. The association said petrol pumps across Pakistan would remain closed until the government accepts its demands. Association leaders said discussions with the Petroleum Ministry failed to resolve major issues, including dealer profit margins and the implementation of daily fuel pricing. They insisted that the current system is not practical for petrol station operators and would create serious operational challenges. The Petroleum Retailers Association has also expressed support for the strike, raising concerns about possible disruptions in fuel supplies if the dispute continues. Meanwhile, the All Pakistan Petroleum Dealers Association (PPDA) is expected to decide whether it will formally join the protest. The association has called a meeting of its executive committee to discuss the situation and determine its future course of action. PPDA officials said they had already shared their concerns with the Oil and Gas Regulatory Authority (OGRA). According to the association, the regulator requested additional time to present the dealers’ concerns to the government before any final decision is made. Fuel dealers believe daily price changes make it difficult to manage inventories, update fuel prices, and maintain smooth business operations. They argue that the previous fortnightly pricing system provided greater stability and reduced uncertainty for both retailers and consumers. The government, however, maintains that the daily pricing mechanism will ensure that domestic fuel prices more closely reflect changes in global oil markets. Officials believe the new system will improve transparency and allow quicker adjustments to international price movements.

Leave a Reply

Your email address will not be published. Required fields are marked *