Bangkok: The Cabinet has approved a one-year extension of the 7% VAT rate, from October 1, 2025, to September 30, 2026, indicating that this will help mitigate the impact on the public from the current economic situation.
According to Thai News Agency, Deputy Finance Minister Chulaphan Amornvivat revealed that the Cabinet has considered the potential issues of waiting for a new government, which could lead to a transitional period and potential problems if the VAT rate is not extended before it rises to 10%. The Cabinet, exercising its authority, resolved to approve this extension to enhance economic growth potential.
Mr. Chulaphan, when questioned about the strengthening baht, declined to comment, stating that he would wait for the new government's formation and subsequent policy implementation before providing his opinion on these matters.
Additionally, the Cabinet reviewed the State Audit Commission's report on the government's 10,000 baht cash handout economic stimulus program. The report indicates positive results, aligning with fiscal discipline and the established budget framework.