The incoming Bhumjaithai Party (BJT)–led government has no plans to raise the value-added tax (VAT) rate to 10% within the next three years, a senior party executive said, stressing that economic recovery remains the administration’s top priority.
Siripong Angkasakulkiat, BJT deputy leader, made the remarks on Monday in response to a proposal raised last week by a Senate sub-committee on economic, monetary and fiscal affairs.
The panel had suggested a gradual overhaul of Thailand’s tax system, including a phased increase of VAT to 10%, prompting speculation that the new government might consider lifting the current VAT ceiling of 7%.
Mr Siripong played down those concerns, saying there are no short-term plans to raise VAT. While acknowledging discussions about boosting state revenue, he said any such measures would not be considered for at least two to three years.
He added that tax policy would only be reviewed once the public sees clear signs of economic improvement.
“The government’s first priority is economic recovery, not increasing revenue by raising VAT,” he said.
The Senate sub-committee recently hosted a seminar on tax reform attended by representatives from various agencies, including the Revenue Department and the Securities and Exchange Commission.
Kampol Supaphaeng, chairman of the panel, said the tax system is vital for state revenue, economic fairness and long-term development. He noted that rapid global economic shifts, technological change and Thailand’s transition into a super-ageing society make a comprehensive review of the tax structure necessary.
Former deputy finance minister Pisit Lee-artham proposed increasing VAT from 7% to 10%, arguing that existing law allows for such an adjustment. He said the additional revenue—estimated at 400 billion baht—could be channelled into an elderly welfare fund or used to stimulate economic growth.
Meanwhile, Chayanant Tiyatrakarnchai, chairwoman of the fiscal affairs sub-committee, warned that the next government will face ongoing budget deficits, rising household and public debt, and the financial burden of transitioning to a green economy.
Varith Pipitpojanakarn, the panel’s secretary, said Thailand’s fiscal outlook remains concerning, with the budget deficit projected at 4.4% and public debt expected to approach a critical level of nearly 70% by 2028.