PATTAYA, Thailand – Thailand’s Cabinet has approved a one-year extension of the reduced 7% value-added tax (VAT), effective from October 1, 2025, through September 30, 2026. The measure is aimed at alleviating the impact on citizens amid current economic conditions.
Deputy Finance Minister Chulaphan Amornwiwat stated that the Cabinet agreed to extend the VAT reduction to prevent a sudden jump to 10% during the transition period before the formation of a new government. The decision is intended to support economic growth by maintaining purchasing power and reducing financial strain on households.
Regarding questions about the impact of the strong baht, Mr. Chulaphan declined to comment, noting that such matters will be assessed once the new government is in place and policies are finalized.
Also discussed at the Cabinet meeting was a report from the Office of the Auditor General on the government’s 10,000-baht cash stimulus program. The report concluded that the program had positive outcomes and complied with fiscal discipline and budgetary frameworks.
