Department wants VAT kept at 7% for another year

The Revenue Department plans to propose that the Finance

 Ministry maintains value-added tax (VAT) at 7% for another year.

This would help boost consumer confidence as the economy is

picking up, said Prasong Poontaneat, director-general of the department.

The 7% VAT rate is due to expire at the end of September. Without

 the 7% VAT renewal, the tax will be imposed at 10% of product and

 service value.

VAT's contribution to government coffers is increasing, but the full-year

 amount is expected to fall short of the target by 100 billion baht due

 largely to the decline in VAT on imported goods, oil in particular,

 said Mr Prasong.

The department has set the VAT target at 700-800 billion baht for

 this fiscal year, ending Sept 30.

The largest tax revenue contributor also estimated that its tax revenue

 will miss the target by more than 100 billion baht, but it tried to cap

 the shortfall to below 150 billion baht, he said.

"In May, tax collection showed better signs. The tax revenue exceeded

 the same period last year by 40 billion baht or 6%, but it was still

lower than the target by 30 billion baht. The tax items that were lower

 than targeted are beyond our control -- chiefly VAT on imported oil,"

he said.

Tax incentives to comply with the government's recent policy also

hurt the department's revenue stream, said Mr Prasong, adding that

they are the income tax reduction for the single financial account

 scheme and holiday tax breaks.

The Revenue Department is set to garner 1.90 trillion baht in tax revenue

for fiscal 2016, assuming that the oil price averages US$60 a barrel.

Due to the single financial account scheme, a set of tax perks offered

to attract small and medium-sized enterprises to pay tax correctly,

 sales revenue reportedly rose by 6-10%, he said.

News,General,Bangkok Post,4 July 2016.

 

At 7% VAT rate some customers do not want Tax Invoice so if 

VAT rate increase  to  10% there will more procedure to avoid the

 tax system,and will be lower the amount of tax receive.

At this point cost of living is high so as we want to picking up the

economy and boost consumer confidence,to remain VAT rate at 7 %

will help all the system and people.

Sincerely Yours.