VAT rate to be pegged at 7 percent for another year

VAT rate to be pegged at 7 percent for another year

BANGKOK: — The Revenue Department has proposed the Finance Ministry to keep the value-added tax (VAT) rate at 7 percent for another year until the end of September next year, citing the slow economic recovery and impacts on business operators and the public if VAT is adjusted up.

Revenue Department chief Prasong Poonthanet said Monday that the government, in the past year, has meted out various packages to help grassroot people who have been hard hit by drought while exports are contracting due to global economic slowdown.

Increasing VAT rate from 7 to 10 percent will add more burden on the consumers and increase the production costs of business operators, he noted.

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