Thailand's Prime Minister has denied newspaper reports suggesting the government will increase the value-added tax this or next year. The PM has quashed the rumors, saying the country is still in economic recovery.
The report says the VAT could be increased from current 7 percent to 10 percent, in order to provide more state welfare. The PM denies this, but says the Fiscal Policy Office is considering a restructure of the entire tax system to ensure fairness and to allow an increase in government spending. But he admits to having consulted his Finance Minister on widening the taxation base, and has assigned the Finance Ministry to conduct a study.