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Tax hikes may be unavoidable in post-COVID economy


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(Photo by PORNCHAI KITTIWONGSAKUL / AFP)

 

COVID-19 has dealt a double blow to Thailand’s finances, reducing tax revenue while increasing the amount of money the government must spend to keep the economy afloat.

 

The Cabinet recently called on the Finance Ministry to study how tax revenue can be boosted, leading to speculation that value-added tax (VAT) may be hiked in the near future.

 

However, Finance Minister Arkhom Termpittayapaisith has insisted that the government will not raise the VAT rate for now.

 

Full story: https://www.thaipbsworld.com/tax-hikes-may-be-unavoidable-in-post-covid-economy/

 

 

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Yep, the economy is cratering, most other countries are pouring billions and trillions of additional spending to offset the negative impact of Covid, and Thailand wants to confiscate even more from those who now have even less.  

I am not sure where exactly this lunacy comes from, but it is obvious they are have a real commitment to it. 

One thing is sure:  The closest thing to Eternity on earth is a "temporary" increase in any tax to meet a short term crisis. 

 

Edited by Thomas J
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Before I’d go after a hike in the VAT rate (or ending of the semi-permanent rollback) Id look to....

 

1) Increase tax payer compliance - such as getting more people who work and earn income in the “informal” economy, onto both the income tax rolls ...

(true, a lot of the workers in the informal sector won’t make enough to even be subject to taxation after all the statutory deductions are taken out, but I still think they need to be brought into the system none the less).

 

2) Make the necessary changes so the same VAT is collected and remitted by all the various “online only” sellers as a traditional brick-and-mortar shop would be paying. 

 

Granted, I think that these ideas wont be enough to raise the taxes they think they will need, but to me, BEFORE i start looking for new or higher taxes, I’d want to be sure that i’m collecting all or as much as practical, of the current taxes that the laws allows. 

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5 hours ago, edwinchester said:

Instead of a rise in VAT, which disproportionately hurts those who earn the least, maybe Thailand's fabulously wealthy should do the patriotic thing and start paying a more equitable share in the countries moment of need.

Maybe Prayut will ask the billionaire families to donate again?

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16 minutes ago, hotchilli said:

Maybe Prayut will ask the billionaire families to donate again?

And just as last time the greedy will just say  " <deleted> off "

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3 hours ago, keithkarmann said:

If the workers were paid more then they would be able to contribute some income tax.

"Contribute" is that what you call it? 😆

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16 minutes ago, Venom said:

"Contribute" is that what you call it?

Yes don't you know the correct "wordsmithing"

Use:

Progressive instead of Liberal or Socialist
Contributions instead of taxes
Your fair share instead of confiscatory
Investment instead of pork barrel spending

Effective legislation instead of redundant
Sensible Controls instead of unenforceable or impractical. 

I "think" there is a class for this at most major universities today. 

 

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But....but; we've always been told down the years that Tourist revenue is but a very small contributor to the overall income of the country, barely important at all !

 

Also; what has happened to the huge pile of Dollars and other Foreign Currency that they have been sitting on for the last 15 years or so, has it been pilfered off to certain people's accounts in the Britsh Virgin Islands or some other secret hideaway ?

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On 4/8/2021 at 11:50 AM, Thomas J said:

Yep, the economy is cratering, most other countries are pouring billions and trillions of additional spending to offset the negative impact of Covid, and Thailand wants to confiscate even more from those who now have even less.  

I am not sure where exactly this lunacy comes from, but it is obvious they are have a real commitment to it. 

One thing is sure:  The closest thing to Eternity on earth is a "temporary" increase in any tax to meet a short term crisis. 

 

 

I said some months ago that covid will expose Thailand for the 3rd World Country it truly is.  

 

This will be laid bear for the world to see over the next 12 to 24 months.  

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On 4/8/2021 at 11:50 AM, Thomas J said:

and Thailand wants to confiscate even more from those who now have even less.  

Uh, I didn't quite read it that way..... Maybe raise the tax rates on the last two or three echelons of tax payers, you know, the rich. Then use these proceeds to subsidize the poorer folks, which meanwhile stimulates the economy. Not too far different from what Biden has contemplated for the US.

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On 4/8/2021 at 5:19 PM, Thomas J said:

Yes don't you know the correct "wordsmithing"

Use:

Progressive instead of Liberal or Socialist
Contributions instead of taxes
Your fair share instead of confiscatory
Investment instead of pork barrel spending

Effective legislation instead of redundant
Sensible Controls instead of unenforceable or impractical. 

I "think" there is a class for this at most major universities today. 

 

Rhetoric 101, it's a Social(ist) Science class.

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2 hours ago, JimGant said:

Maybe raise the tax rates on the last two or three echelons of tax payers, you know, the rich.

 

I doubt it.

 

It will probably be an increase in a broad based tax, like the VAT, despite the denial. 

 

Any increase in VAT would hurt the poor more than the rich, but everyone pays.  

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