16 Aug 2017
THAILAND: 7% Reduced VAT Rate Extended for 18th Time
The country’s 7% VAT rate is to be maintained until at least September 2018. This marks the 18th time this reduced level has been extended since Thailand first introduced it in 1999.
Back in 1992, VAT was initially introduced at a statutory rate of 10%, a level that was later reduced as a supposedly temporary response to the 1997-98 Asian Financial Crisis. It has remained at 7% ever since. While this most recent extension will cost Thailand some Baht 210 billion (US$6.3 billion) in lost revenue, it is seen as essential for sustaining the country’s economic recovery.