Joint committee to propose VAT, income taxes remain steady for 2 more years

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BANGKOK, 7 May 2014  – The Joint Standing Committee on Commerce, Industry and Banking revealed on Tuesday it will make suggestion to the government that it keep the VAT and income tax rates steady for two more years, to counteract the slowing economy. 

The committee, which comprises the Federation of Thai Industries, the Chamber of Commerce and the Thai Bankers’ Association, indicated that for two more years after the upcoming expiry of the rates in December, the value added tax rate should be kept at 7 percent and juristic person income tax should remain at 20 percent, while normal income tax rates should also be kept unchanged.

According to the committee, economy has been growing at a slower pace as a result of the political turmoil that has dragged on for more than 6 months; certain growth figures in the first quarter have already hit negative territory. If the political situation resolves quickly, within June, the economy will expand by 2.5-3% this year. If the situation prolongs until the end of the year, the expansion will only be between 1-2%. If violence breaks out, there is the possibility that economic growth might be negative.

The committee said it would make the suggestions to the government within this week.

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