FX.co ★ Thailand to Maintain VAT at 7% for Another Year

Thailand's cabinet has decided to extend the current value-added tax (VAT) rate of 7% for an additional year, as announced by Deputy Finance Minister Julapun Amornvivat and reported by Reuters. Consequently, both businesses and consumers will continue to benefit from the lower tax rate, although future policy remains uncertain. Should this reduced rate lapse, VAT would increase to its standard rate of 10% starting from October 1, 2025. Deputy Prime Minister and Finance Minister Pichai Chunhavajira mentioned last week that the government is still evaluating whether to allow the VAT to rise to 10% in 2025 or to preserve the 7% rate for another three-year period. He underscored that the ultimate decision will be based on the prevailing economic circumstances rather than any political influence.