BANGKOK, 15 July 2015: The Thai Cabinet will maintain the value-added tax (VAT) rate at 7% for one more year, owing to the poor performance of the Thai economy, the National News Bureau of Thailand reported, Tuesday.
According to Finance Minister, Sommai Pasi, VAT will remain unchanged at 7% until 30 September 2016. It was due to increase 30 September this year to 10%.
The minister said a weakening growth of Thai exports which has hindering the national economy was cited as the main reason behind keeping VAT at the same rate.
Tourism is one of just a few industries that is forecasting growth at around 8% in terms of revenue this year.
NNT reported that many other countries including India, Indonesia, Australia, Singapore, Taiwan, the Philippines, South Korea and Malaysia, were also suffering from an export slump.
Only China and Hong Kong have posted slight increases in exports.