Thailand extends 7 percent VAT collection period for another two years

The Cabinet of Thailand has given green light to 7 percent VAT for another two years in a bid to lessen the financial burden businesses and consumers affected the COVID-19 pandemic.

Thailand extends 7 percent VAT collection period for another two years. (Photo: regdesk.co)

Bangkok (VNA) - The Cabinet of Thailand has given green light to 7 percent VAT for another two years in a bid to lessen the financial burden on businesses and consumers affected the COVID-19 pandemic.

Rachada Dhanadirek, deputy government spokeswoman, said the 7 percent VAT will be retained until September 30, 2023. The 7 percent tax rate, which has been extended several times, was set to expire on September 30 this year.

The Finance Ministry told the cabinet that since the third quarter of 2020, the Thai economy has been drastically affected by the pandemic, with a slump in private consumption, weakened consumer confidence and a sharp decline in tourism revenue. Those factors are expected to cause the Thai economy to miss the ministry's 1.5-2.5 percent growth target for this year.

Thai Finance Minister Arkhom Termpittayapaisith said the move is one of many measures the government is taking to boost business confidence and boost the economy's recovery.

Global credit rating agency Moody's on August 24 maintained Thailand's credit rating at Baa1 with a stable outlook, assessing that the country still has enough economic activity to balance the challenges currently caused by the COVID-19 pandemic./.

VNA