Cabinet Retains 7% Value-Added Tax Rate

BANGKOK, Sept 10 (TNA) – The Cabinet agreed to retain the 7% value-added tax (VAT) rate for another one year to September 30, 2020. The Finance Ministry proposed to keep the VAT rate unchanged for one more year to help people shoulder the burden of the high cost of living and build confidence among business operators as well as to promote the economic growth. The decision to maintain the VAT rate will also support economic and social stabilization. The value- added tax or VAT is a tax on the sale of goods or the provision of services. It is also collected by the Customs Department at the time goods are imported. Finance Minister Uttama Savanayana said VAT collection earlier fell short of the target due to the economic slowdown and the stronger baht, which contributed to a drop in value of imported goods. However, he said in the latest report of the Revenue Department, VAT collection in August increased 4.4 per cent year-on-year, showing a sign of rebound in domestic consumption. (TNA)