The Permanent Secretary of Commerce is confident that the announced VAT hike, from the current 7% to 10% in October 2015, will not affect public spending.
According to Commerce Permanent Secretary Ms. Chutima Boonyaprapatson, the VAT hike is inevitable as the economic setback forced the previous government to hold it on hold and that the hike is more acceptable to the public now as the local economy has begun to improve.
Furthermore, the VAT hike is making more sense as the kingdom is entering the AEC next year, saying the nation must adjust its tax rate to match those of other ASEAN members.
The public has been given ample time to prepare for the change thus the hike should not affect their spending, she added.
