Sanya Tansakul, deputy leader of the People’s Party (PP), took to social media to criticize the government for its failure to clarify its stance on rumors surrounding a proposed increase in value-added tax (VAT).
Her comments came on Saturday in response to Suksit Srijomkwan, the prime minister’s deputy secretary-general for political affairs, who had defended Prime Minister Paetongtarn Shinawatra amid growing speculation about the VAT hike. Mr. Suksit claimed that the prime minister was working to clear up misunderstandings and accused Ms. Sirikanya, whose party promotes a welfare state, of obstructing tax reform efforts.
In her response on X, Ms. Sirikanya stated that she had participated in several discussions regarding the VAT issue throughout the week, yet was still accused of hindering reforms. She recognized that the VAT, a major government revenue source that has been set at 7% since 1999 while having a legal ceiling of 10%, might need to be increased. However, she argued that any increase should be gradual, kept below 15%, and should include measures to lessen its economic impact.
She criticized Prime Minister Paetongtarn for not effectively addressing the issue when questioned by the media on Thursday, noting instead that the prime minister had posted on X the next day, insisting there were no plans to raise VAT to 15%.
Previously, Finance Minister Pichai Chunhavajira had faced criticism after suggesting at a forum an increase of VAT to 15%, alongside proposals to reduce corporate and personal income taxes to boost state revenue, enhance competitiveness, and alleviate economic disparities. Ms. Paetongtarn later rejected this proposal, stating that no VAT adjustment was being considered.
Ms. Sirikanya further condemned the government’s lack of effective communication, warning that it threatens efforts to reform the tax structure.
In a separate comment, Charnnarong Buristrakul, chairman of the Khon Kaen Chamber of Commerce, mentioned the possibility of raising VAT to address pressing needs such as flood rehabilitation. However, he cautioned that any increase should be capped at 10% due to the fragility of the economy.
