National —
On December 5th, 2024, Mr. Thanakorn Wangboonkongchana, the former Minister in the Prime Minister’s Office and deputy leader of the United Thai Nation Party, expressed concerns over proposed tax reforms by Deputy Prime Minister and Finance Minister Pichai Chunhavajira.
The reforms aim to implement a flat 15% rate for corporate and personal income taxes and value-added tax (VAT).
Thanakorn acknowledged the government’s need to boost revenue through higher VAT to offset reductions in income tax and support public welfare programs. However, he warned that a sharp VAT increase from 7% to 15% could raise living costs, particularly for low-income groups, and dampen consumer spending.
While the flat tax may attract investment and spur economic growth, Thanakorn cautioned that it could widen income inequality.
He suggested complementary measures such as tax relief for low-income groups, wealth taxes, and gradual implementation to ensure fairness and fiscal sustainability.
He also urged careful consideration of the economic and social impacts of such reforms, calling for public consultations to ensure that any tax adjustments align with Thailand’s economic recovery and do not overburden citizens.
This article originally appeared on our sister website The Pattaya News.
