Thailand's VAT maintained at 7% until September 2015

BANGKOK, July 19 (TNA) - The Revenue Department, under the Ministry of Finance, has confirmed that Thailand's value added tax (VAT) collection will be maintained at 7 per cent until September 30, 2015. Revenue Department Director-General Prasong Poontaneat told reporters whether the VAT collection would be increased to 10 per cent, as proposed by the National Council for Peace and Order (NCPO) earlier this week, would depend on a decision by the new Thai government to be formed later. Prasong acknowledged that the decision needs to be based on several relevant factors, including the updated national economic situation, consumer confidence, Thai exports and whether Thailand would gain after the ASEAN Economic Community is formed by the end of 2015. Prasong admitted that the current VAT collection in Thailand is the lowest among member countries of the Association of Southeast Asian Nations (ASEAN), but it is not necessary for Thailand to increase the VAT collection to 10 per cent immediately, as it can be made at gradual steps of one per cent each, based on the updated national economic condition. The VAT collection in Thailand rose 1.3 per cent in June 2014, after contracting for several months, and it is believed that by maintaining the VAT rate at 7 per cent should boost Thailand's economic growth to 3.5 per cent this year. The NCPO has, meanwhile, approved to extend Thailand's corporate tax rate at 20 per cent for another year, while maintaining the maximum personal income tax rate, which is now collected at 35 per cent, until the end of this year, enough time for the new government to consider. (TNA)