PATTAYA, Thailand – Thailand is not in a position to raise value-added tax (VAT) at this time, despite the measure remaining in long-term fiscal plans, according to the National Economic and Social Development Council (NESDC).
Speaking at Government House on Monday, April 21, NESDC Secretary-General Danucha Pichayanan said current economic conditions do not support an increase in VAT from 7% to 10%, noting that the policy remains only a framework option for the future.
“I personally think it would be difficult to proceed with a VAT increase at this stage. The situation must improve first,” he said.
Danucha added that the issue was discussed in principle but no decision has been made on timing or implementation.
He was speaking ahead of a scheduled meeting between four key economic agencies — the Ministry of Finance, Bank of Thailand, Bureau of the Budget, and NESDC — which will focus on preparing Thailand’s fiscal 2027 budget framework. He said coordination is expected to be smoother this year, with efforts to ensure the budget is ready for the start of the fiscal cycle on October 1.
On public debt management, Danucha said discussions on raising the debt ceiling have not yet been formally convened. Any move would require a meeting of the relevant fiscal discipline committee, along with further consultation with Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas.
The government is currently reviewing fiscal space and spending priorities as part of broader budget planning, but officials emphasized that no immediate changes to taxation or debt limits have been finalized.
