On Tuesday, the caretaker Cabinet decided to prolong the 7% value-added tax (VAT) rate for an additional year, from October 1, 2025, to September 30, 2026, according to Deputy Finance Minister Julapun Amornvivat.
Julapun explained that delaying the extension until the new government, led by Prime Minister Anutin Charnvirakul, takes office could be too late, forcing consumers to start paying the higher 10% VAT from October 1. The move aims to ease the economic burden on the public amidst ongoing economic challenges.
The extension is intended to prevent sudden fiscal shocks and provide stability. Julapun did not comment on the baht’s appreciation, stating that the new government should address that issue.
He also mentioned the State Audit Commission’s report on the 10,000-baht cash handout scheme, affirming it boosted the economy and was conducted within proper financial and budgetary frameworks.