BJT deputy leader Siripong Angkasakulkiat gave the assurance on Monday (Feb 23) in response to a proposal floated by a Senate sub-committee on economic, monetary and fiscal affairs last week, reports the Bangkok Post.
The sub-committee suggested gradually restructuring the tax system ‒ including a phased VAT increase to 10% ‒ sparking speculation that the incoming government might consider raising the VAT ceiling, which is currently capped at 7%.
Mr Siripong dismissed concerns about a possible VAT hike, saying the government has no plans to raise VAT in the short term.
He admitted that discussions had taken place about increasing revenue collection. However, he stressed that such measures won’t be on the agenda for another two to three years.
Any reconsideration of tax policy would come only once people feel the economy has clearly improved, he said.
“The first priority is to restore the economy, not to collect more revenue through charging higher VAT,” said Mr Siripong.
The Senate sub-committee last week hosted a seminar on tax restructuring attended by representatives from various agencies, including the Revenue Department and the Securities and Exchange Commission.
Kampol Supaphaeng, chairman of the panel, told the seminar that the tax system plays a critical role in state revenue generation, economic fairness and long-term development.
With rapid global economic changes, technological shifts and Thailand’s transition towards a super-ageing society, he said the country’s tax structure must be carefully reviewed.
Former deputy finance minister Pisit Lee-artham proposed raising VAT from 7% to 10%, noting that the current legal framework allows for such an adjustment.
He said that the additional revenue from the VAT increase, estimated at B400 billion, could be put into a fund to finance an elderly welfare programme and/or stimulate economic growth.
Chayanant Tiyatrakarnchai, chairwoman of the fiscal affairs sub-committee, warned that the new government will have to deal with persistent budget deficits, rising household and public debt, and the costs associated with green economic transformation.
Varith Pipitpojanakarn, secretary of the sub-committee, said the country’s fiscal outlook looked bleak with the deficit projected at 4.4% and public debt expected to climb towards a critical threshold of nearly 70% by 2028.