BANGKOK, 24 March 2015 – Prime Minister Prayut Chan-o-cha asserted on Monday that a revamp of the tax structure is necessary, while the government will only raise the VAT rate when the time is right.
General Prayut said the revamp of taxation was necessary as it would provide future governments with additional tools for reducing disparity and fostering fairness. The value added tax (VAT) is a tax that allows every member of the public to contribute to national development. He added that the VAT rate would only be raised under appropriate circumstances.
According to General Prayut, the less-than-expected amount of revenue collected by the state partly has to do with the decline in exports. Exports, which make up as much as 70% of the country’s GDP, has contracted in line with the global economy. He also noted that Thailand’s manufacturing cost is higher than her competitors’.
The government’s working team on economic affairs has been performing well, but improvements have to be made in the aspect of disseminating information to the public, Gen. Prayut added.