Thai PM orders postponement of VAT increase

BANGKOK, Prime Minister Prayut Chan-o-cha has said that plans to increase the value-added tax (VAT) by the government to 10 per cent from 7 per cent now have to be postponed. General Prayut told journalists that the government has decided to postpone the increase of VAT until the economy improves. On a plan to collect tax on land and buildings for the first time in Thailand, General Prayut said he had ordered the Finance Ministry to prepare details on the tax collection. The prime minister had also earlier ordered a delay to the plan tax on land and buildings, citing the cloudy economic outlook. General Prayut noted however that the government needs to move forward in its plan to collect tax from land and buildings. Land prices appraisal will have to be conducted in the meantime, he said, adding that the law on the tax is expected to come into force in 2017. General Prayut said he personally believes that the tax rate should be different, depending on each particular province and size of land, and those who own more land must pay more tax. He said the government will have to find ways in explain this to the people. The prime minister said Thailand need to increase VAT rate and impose tax on land and buildings, otherwise next government will have no money for developing the country. (TNA)