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

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

Post by BangkokButcher » May 1, 2010, 1:22 am

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-Glo ... ailand.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!!



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

Post by trubrit » May 1, 2010, 7:06 am

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 .

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

Post by jackspratt » May 1, 2010, 7:43 am

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.

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

Post by TJ » May 1, 2010, 7:49 am

"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

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parrot
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Re: VAT on it's way up, or is it??

Post by parrot » May 1, 2010, 10:22 am

The VAT was raised from 7% to 10% following the economic crisis in '97. It was lowered back to 7% in April 1999.

Without another economic crisis, I'd be surprised if the government could pull off another 3% increase without a consumer revolt.

(More general info on VAT at http://www.rd.go.th/publish/6043.0.html )

For what it's worth, our meager 427.25 Baht Makro bill yesterday was tagged for a whopping 3.89 Baht in VAT.
When I bought my new computer last month, the bargained price was 25,000 Baht. I paid 25,000 Baht. In the US (Texas), I would have paid an additional 2000 baht in sales tax. (I realize I probably paid VAT on the quoted 25,000 baht.....but 25,000 was the walkout price....tax title license all included.

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

Post by nkstan » May 1, 2010, 10:58 am

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! :lol:

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

Post by trubrit » May 1, 2010, 11:20 am

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 .

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

Post by jackspratt » May 1, 2010, 11:50 am

Message doesn't appear to have through to the Ban Dung Hospital yet (as of this morning).

Do you have a link that people can look at - there are no references on google for what would seem to be a major policy change?

Thanks

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

Post by thrilled » May 3, 2010, 2:55 am

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?

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

Post by jackspratt » May 3, 2010, 8:05 am

trubrit wrote:
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 .
wiki updates are normally performed pretty quickly, so perhaps the reason it hasn't been updated is that nothing has happened.

A huge policy change for Thailand, affecting most of the population, and nothing (that I can find) in the English newspapers, in google, or even from the Red Shirt stage in Bangkok.

Just out of interest, which Budget are we talking about? The 2009/10 certainly doesn't mention dropping the free health scheme, and the 2010/11 is still being prepared - for presentation at the normal time in June (assuming other matters in Bangkok do not prevail to prevent that).

Curiouser and curiouser. :-k

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