BANGKOK, Jan 24 — Thailand’s main political parties are objecting the government’s plan to raise value-added tax (VAT), saying it would hit consumers and small businesses already feeling the pinch.
The government’s fiscal plan aims to raise VAT to 8.5 per cent by 2028 and 10 per cent by 2030, sparked debate at a recent seminar on tax policy ahead of the 2026 election at the University of the Thai Chamber of Commerce, The Bangkok Post reported today.
Democrat Party deputy leader Korn Chatikavanij said the VAT increase is “inappropriate while growth remains fragile”, but backed a gradual rise in corporate tax from 20 per cent to 25 per cent.
Sirikanya Tansakun of the People’s Party said any VAT hike should wait until economic recovery and suggested raising its tax registration threshold for small and medium businesses to 5.4 million baht annually from 1.8 million.
Pheu Thai’s Worawong Ramangkura warned that a higher VAT in 2028 would push businesses to recalculate costs, and said economic growth plus a broader tax base could still boost revenue by 300 billion baht.
