BANGKOK, Thailand – The government has approved a one-year extension of the 7 percent Value Added Tax (VAT) rate, which will remain in effect until September 30, 2027, to help reduce living costs and support economic stability. On July 27, 2026, Government Spokesperson Rachada Dhnadirek announced that the Cabinet approved a draft Royal Decree from the Ministry of Finance to extend the tax relief measure. The extension will begin on October 1, 2026, directly after the current mandate ends on September 30, 2026.
Under the decree, the VAT rate will remain at 6.3 percent, totaling 7 percent with local municipal taxes. This rate applies to all sales of goods, services, and imports. The spokesperson stated that maintaining the reduced tax rate is essential to ease financial pressure on the public and stimulate domestic consumption. The Ministry of Finance expects the extension to strengthen business confidence, encourage private-sector investment to achieve national targets, and create a favorable environment for businesses nationwide. (NNT)
