The Thai Ministry of Finance has presented an ambitious initiative to reform the country's tax system in order to increase economic competitiveness and reduce the level of income inequality. In his main performance at the 2025 Sustainable Development Forum, Minister of Finance Pikhai Chunhavajira voiced a complex plan that includes a significant reduction in corporate and income tax rates, as well as a possible adjustment of value added tax rates (VAT). These measures are aimed at creating a more favorable investment environment and stimulating economic growth, which has experienced certain difficulties in recent years.
One of the key changes is the proposal to reduce the corporate income tax from the current 20% to 15%. This will not only make Thailand more attractive for international investors, but will also meet the world standards of minimum corporate income tax. Such measures are designed to attract new business partners and accelerate the country's economic development, creating new jobs and stable revenues for the budget.
A completely different level of ambitiousness demonstrates a proposal to reduce the personal income tax rate from 35% to 15%. This decision aims to attract highly qualified specialists and global talents to Thailand, which can have a significant impact on the strengthening of the local economy. In conditions of competition for smart personnel, each state strives to create attractive tax conditions, and Thailand is no exception.
At the same time, the government carefully considers the current VAT rate of 7%, which is significantly lower than international standards in the range from 15%to 25%. The ministry is aware of a potential public reaction to the possibility of increasing this tax and is careful in its proposals. It is important that any changes are balanced and take into account the interests of the population in order to avoid negative consequences for the most vulnerable layers of society. In general, the initiative of the Ministry of Finance is an important step towards improving the tax system and promoting the economic development of Thailand.
Piayu emphasized that although an increase in value added tax (VAT) can cause certain difficulties, this step can become an important tool in the fight against economic inequality. The planned reforms that are in the spotlight of the government agenda are aimed at creating a more stable and fair economic environment in Thailand. These changes are not random; They are part of a wider strategy covering various aspects of economic policy, in order to improve the quality of life of citizens and increase the country's competitiveness in the international arena.
The financial economy management (OEF), together with the income department, was awarded a comprehensive study of the proposed changes. Pichach personally delves into the initial stages of this comprehensive initiative to reform the tax system. This approach emphasizes the importance of thorough preparation and analysis, which indicates the desire of the government to ensure transparency and reinforce reforms with real data and analysis.
The international context of these proposals also plays an important role in public discussion. While the current VAT rate in Thailand is 7%(while the regulated rate is 10%), the neighbors in the region, such as Singapore, already use the rate of 9%, while European countries are significantly exceeding these indicators, often establishing Levels in the region of 20%. Such comparative data emphasize the need to adapt the Thai tax system to international standards in order to attract investments and maintain sustainable economic growth.
The government claims that his proactive approach signals the intention to modernize the Thai tax system. This balance between the need to increase income and maintaining economic attractiveness for business is an important aspect of a long -term growth strategy. Although the final details of tax reforms have not yet been confirmed, their further discussions and announcements are expected during the study, which will be a key moment to ensure the efficiency and justice of new tax initiatives.