Bangkok (AP) – Finance Minister Uttama Savanayana said the weekly cabinet meeting has decided to keep value-added tax (VAT) at 7% for another year, as the current tax measure is set to expire on September 30 this year. Uttama said it is not appropriate to increase the tax rate to 10% at this time due to the current economic situation. The government will assess the situation on a yearly basis before moving to adjust the VAT rate.
According to the Revenue Department, VAT collection has improved because of the increase in domestic consumption. The cabinet meeting on Wednesday approved the Board of Investment’s (BOI) stimulus proposal, which was endorsed by the economic ministers last week.
The cabinet ministers also agreed with the Ministry of Labor’s proposal to raise the compensation rate to an average of 400 days of salary per 20 years of employment as an award entitlement for state enterprise employees who have worked for many years. The measure will benefit more than 7,000 employees who are due to retire on September 30 this year.