ID :
136246
Thu, 08/05/2010 - 09:09
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Shortlink :
http://m.oananews.org//node/136246
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Government’s decision to extend VAT is justified, says FPO
BANGKOK, Aug 5 – The Thai government’s decision to extend value-added tax collection at 7 per cent for another two years is justified because the economy is still on the path of recovery, according to the Fiscal Policy Office (FPO).
FPO Director-General Satit Rungkasiri said the government’s move is considered appropriate because the fiscal position in Fiscal 2010 remains stable now that the government is able to earn revenue in higher amounts than initially targeted.
Also, the fiscal position in the medium term remains sound as witnessed by the stable level of the country’s public debt.
He said the government’s ability to earn more revenue due to the economic recovery and its decision to withdraw the executive bill on borrowing of Bt400 billion for economic rehabilitation helped strengthened the country’s fiscal position.
At present, the public debt stands at 42.6 per cent of the gross domestic product (GDP), lower than targeted at no more than 60 per cent.
Mr Sathit said Thailand’s economic recovery is now at an initial stage with exports serving as a key driving force while private consumption had not yet fully recovered.
The private consumption grew 4 per cent in the first quarter of this year after a contraction of 1.1 per cent in 2009. Should VAT be adjusted upward for now, it would negatively impact recovering private consumption, he said. (MCOT online news)
FPO Director-General Satit Rungkasiri said the government’s move is considered appropriate because the fiscal position in Fiscal 2010 remains stable now that the government is able to earn revenue in higher amounts than initially targeted.
Also, the fiscal position in the medium term remains sound as witnessed by the stable level of the country’s public debt.
He said the government’s ability to earn more revenue due to the economic recovery and its decision to withdraw the executive bill on borrowing of Bt400 billion for economic rehabilitation helped strengthened the country’s fiscal position.
At present, the public debt stands at 42.6 per cent of the gross domestic product (GDP), lower than targeted at no more than 60 per cent.
Mr Sathit said Thailand’s economic recovery is now at an initial stage with exports serving as a key driving force while private consumption had not yet fully recovered.
The private consumption grew 4 per cent in the first quarter of this year after a contraction of 1.1 per cent in 2009. Should VAT be adjusted upward for now, it would negatively impact recovering private consumption, he said. (MCOT online news)
