The government has rejected reports of a planned increase in value-added tax (VAT) from 7% to 10%, calling the claims inaccurate and reaffirming its focus on lowering living costs and supporting economic recovery.
Deputy government spokeswoman Rachada Dhnadirek said there is no policy to raise VAT at this time. She added that speculation about an emergency decree to enable large-scale borrowing has been misinterpreted, clarifying that earlier remarks by Pakorn Nilprapunt were purely legal in nature.
Under Section 172 of the Constitution, such a decree could be issued in urgent circumstances, as seen during the Covid-19 period, but no decision has been made to pursue this option.
Meanwhile, Kamphon Suphaphaeng withdrew a Senate study on tax restructuring to avoid confusion. The proposal had suggested a gradual VAT increase of 1% per year over three years, primarily targeting higher-income groups while limiting the impact on lower-income households. He emphasised that the Senate cannot require the cabinet to adopt the measure.
Danucha Pichayanan of the National Economic and Social Development Council also confirmed there are no plans to change VAT, noting that ongoing discussions among economic agencies relate to routine preparations for the 2027 fiscal budget.