The Cabinet has approved to maintain the value-added tax (VAT) rate at 7% for another year, starting from October 1, 2020, to September 30, 2021, for all sales of goods, services, or imports that are subject to VAT, in order to help reduce the cost of living for the public.

         

      Minister of Finance Pridi Daochai revealed that today (August 25, 2020), the Cabinet has approved the proposal from the Ministry of Finance regarding the draft royal decree under the Revenue Code concerning the reduction of the VAT rate (version ...) B.E. .... (measures to extend the VAT reduction period), allowing the VAT to be collected at a rate of 7% (including local taxes) for all sales of goods, services, or imports that are subject to VAT, for transactions occurring from October 1, 2020, to September 30, 2021.

Extending the VAT reduction period while maintaining the rate at 7% will help alleviate the cost of living for the public and build confidence in business operations for the private sector, which will contribute to the recovery of the country's economy as the situation of the COVID-19 pandemic improves.