Thread by @ThaiEnquirer

Thailand needs to address its growing spending needs while keeping public debt under control, according to the World Bank's latest report on the country.

One of the suggestions is to increase #VAT.

Link to report - documents1.worldbank.org/curated/en/099…

#Thailand #ภาษีมูลค่าเพิ่ม

The report emphasizes the necessity of implementing reforms to mitigate rising fiscal pressures, which include challenges associated with the aging population and climate change.

The report underscores the importance of increasing public spending on social protection, education, and climate adaptation.

It points out that Thailand's Old Age Allowance, along with other social assistance payments, is relatively low compared to global standards.

Furthermore, the report indicates that per-student education spending at the pre-primary and secondary levels falls behind international benchmarks.

To address the costs associated with more frequent and severe flooding, storms, and coastal erosion, the report also stresses the necessity of significant investments in climate change adaptation.

To address these spending needs, the report suggests a series of progressive tax reforms including raising the VAT rate and removing exemptions, broadening the personal income tax base and streamlining allowances and deductions, and expanding property tax collection.