Is Value Added Tax reduction a suitable policy for Thailand?
Keywords:
Value Added Tax, ThailandAbstract
On 24th August 2021, the Thai Cabinet approved the extension of the reduced Value Added Tax (VAT) rate of 7%, effective until 30th September 2023. The objectives of this policy are: (a) to stimulate economic mechanisms; (b) to reduce the living cost of the people; (c) to build private sector’s trust in conducting business; and (d) to facilitate the smooth running of infrastructure investment. The paper seeks to evaluate whether the reduction of Value Added Tax is suitable for Thailand. The author will determine its effectiveness in achieving its objectives and whether the benefit from the tax incentive outweighs the loss of revenue or not
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