Thailand Proposes Tax Reforms to Boost Economy

Thailand's Finance Minister Pichai Chunhavajira has proposed a tax reform plan aimed at enhancing state revenue and economic competitiveness, which includes increasing the value-added tax (VAT) from its current rate of 7% while reducing corporate and personal income tax rates. This proposal aligns with OECD guidelines suggesting a minimum corporate income tax of 15%, prompting discussions to decrease Thailand's current 20% rate. Pichai emphasized the need to attract skilled workers by potentially introducing a flat personal income tax rate of 15%, contrasting with the current maximum of 35%. He acknowledged the importance of recalibrating Thailand's high consumption tax base to support low-income individuals and reduce economic inequality. The government is also set to introduce new tax measures to promote sustainable business practices as part of a broader strategic initiative. Final details of the reforms are pending, with comprehensive studies underway by the Office of Fiscal Economics and the Revenue Department.