'No plan' for VAT rate hike

New govt to focus on reviving economy

- CHAIRITH YONPIAM AEKARACH SATTABURUTH

The incoming Bhumjaithai-led administration will not raise the value-added tax (VAT) rate to 10% over the next three years, a BJT executive said yesterday, adding that the party's immediate focus is economic recovery.

BJT deputy leader Siripong Angkasakulkiat gave the assurance yesterday in response to a proposal floated by a Senate subcommittee on economic, monetary and fiscal affairs last week.

The subcommittee suggested gradually restructuring the tax system — including a phased VAT increase to 10% — sparking speculation that the incoming government might consider raising the VAT ceiling, which is currently capped at 7%.

Mr Siripong dismissed concerns about a possible VAT hike, saying the government has no plans to raise VAT in the short term.