20 Sept 2016
THAILAND: 7% Reduced Vat Rate Extended for 17th Year in Bid to Boost Recovery
The country’s reduced 7% VAT regime is to be extended until at least the end of September 2017. Previously scheduled to be withdrawn at the end of this month, this is the 17th time that the reduced level has been extended since it was first introduced in 1999.
The rate was originally cut from 10% in the wake of the Asian financial crisis (1997-98). While this most recent extension is set to cost Thailand THB257 billion (US$7.32 billion) in lost revenue, it has been justified as being essential for ensuring the country’s economic recovery.