The Thai government plans to raise VAT from 7% to 10% by 2030 to improve fiscal stability. However, restaurant industry leaders oppose the move, warning it will cause inflation and increase living costs.
They argue that restaurants face a high tax burden because they can’t claim back VAT on raw, VAT-exempt produce. Industry groups are urging the government to keep a 7% VAT rate for food and tourism sectors.
The government aims to gradually increase VAT to 8.5% by 2028 and 10% by 2030 as part of a plan to cut the budget deficit. Industry experts warn that the proposed hike could lead to higher inflation, especially since restaurants already bear significant VAT costs due to their raw material expenses.