Thailand has no plans to raise VAT from current 7%: finance ministry

THAILAND has no plans to raise the current 7 per cent value-added tax (VAT) to help support the economy, which is expected to grow at a faster pace in the second half of the year, the finance ministry said on Monday (Aug 28).

The current VAT level will also help reduce living costs and build business confidence, the ministry said in a statement.

Strength in the tourism sector and increased domestic consumption will continue to drive South-east Asia’s second-largest economy, which is expected to grow faster in H2 after expanding 2.2 per cent on year in the first half, the ministry said.

The government’s fiscal position remained strong and sufficient for implementing economic measures, the ministry said.

The finance ministry has forecast economic growth of 3.5 per cent this year, after last year’s 2.6 per cent expansion. REUTERS