Pichai proposed increasing VAT in Thailand to reduce economic inequality and modernize the tax system, emphasizing thorough studies to ensure balanced revenue generation and sustainable business growth.
VAT Increases and Economic Inequality
Sundar Pichai has emphasized that increasing Value Added Tax (VAT) is a crucial step toward reducing economic inequality in Thailand. Despite the potential challenges, he believes it is necessary to create a more sustainable and equitable economy. His oversight of the initial phases of a comprehensive tax reform initiative reflects a commitment to modernizing the fiscal framework while addressing contemporary economic challenges.
Government Analysis and International Comparisons
The Office of Fiscal Economics and the Revenue Department are tasked with conducting a thorough analysis of proposed VAT changes. Currently set at 7%, Thailand’s VAT is significantly lower than Singapore’s 9% and around 20% in European nations. This analysis could provide essential insights into optimizing tax policy to enhance revenue generation without compromising economic attractiveness for investors.
Commitment to Modernization and Sustainable Growth
The government aims to modernize Thailand’s tax system to improve revenue while supporting sustainable business growth. This proactive approach shows dedication to balancing fiscal reform with investor interests and addressing economic inequalities. More details on these tax reforms will be revealed as the study progresses, highlighting the government’s continued commitment to a fairer economy.
Source : Thailand Plans Tax Reforms to Boost Investment and Promote Economic Equity
