VAT on it's way up, or is it??

I just read on the article below, that the local rate of VAT 'may' be increasing in October of this year.

http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/Tax/Intl%20Tax%20and%20Business%20Guides/2010/dtt_tax_highlight_2010_Thailand.pdf

“The standard rate of VAT is 7% and a 0% rate is applied on exported goods and services. The standard rate is scheduled to increase to 10% in October 2010, although this could be postponed depending on economic circumstances.”

Considering the current goings on within the country I would be highly surprised if it went ahead, maybe I'm wrong of course, but what a time for prices to be on the up!!

Actually BB I read a government budgetary report back in March which indicated this VAT increase was needed to finance the increased military budget which was going up by 40% to counter the insurgence from Cambodia .Personally I think this is BS . I am rather surprised no one on here also picked up the kick in the arse for the rural poor, but as the national news didn't consider it needed prominence, its not surprising . So here it is . As from the 1st April last , the 30bht health care scheme introduced by Khun T is being discontinued as too expensive .I don't think I need to add my comments .

"The VAT is essentially a national sales tax, levied in proportion to the goods and services produced and sold. But its delightful concealment comes from the fact that the VAT is levied at each step of the way in the production process: on farmer, manufacturer, jobber and wholesaler, and only slightly on the retailer.

The difference is that when a consumer pays a 7 percent sales tax on every purchase, his indignation rises and he points the finger of resentment at the politicians in charge of government; but if the 7 percent tax is hidden and paid by every firm rather than just at retail, the inevitably higher prices will be charged, not to the government where it belongs, but to grasping businessmen..."

http://mises.org/daily/4296

I would venture to guess that if you bought that computer in the USA,it would have cost you less than 20,ooo baht including the tax!

jackspratt wrote:According to wiki, the 30 baht scheme has indeed been abolished - as of some time in 2006, it was replaced by a free scheme.

http://en.wikipedia.org/wiki/Health_care_in_Thailand

Members of my family who have been to the local hospital during the past month have paid zero.

As stated, comments not really needed.

The article you quote was last updated in 2008. Two years ago. However it did say " it is not clear whether the new govt will change it as of 2008. Well according to the statement accompanying the budget , they have . Its abolished.As from April 1st. 2010
It does not alter the free medical scheme for teachers and other govt employees .

Someone help me here.I went and bought some gold at yaroghat road ,bangkok chinatown.I had to pay VAT of course.But they wouldn't give me A paper so I could get it back when I went to the airport.So with gold I presume I can't get the VAT returned?