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The former Minister of Finance Picado does not raise taxes In another 6 months, the tank is seriously broken.
Date 09 September 2020 Time 15:10
The former finance minister insisted on not raising the price by 9% for the next 6 months, the tank was badly broken.
Sommai Tax, a former finance minister, revealed that the government’s proposal to increase the value added tax (VAT) from 7% to 9% or up to 2% to increase government revenue solves the problem of a broken treasury. Reduce debt to pay for enough inventory to spend. It is not a sloppy offering. But with information and seen abroad, it has, like Japan. The VAT tax started in 1989 from 3% of the last 30 years, Japan has taxed at 10%, so you do not see that the economy will expand, decrease or purchasing power.
The former finance minister said the claims should not raise taxes. Because there’s a lot of money in inventory. It’s an understatement. That he would like to inform the government and the people that The inventory is the working capital of the country. Now there is no inventory. The available inventory comes from a loan that loses interest. Because the country has always made a deficit budget
“I want to tell politicians and people that the inventory is just a loan. In fiscal year 2020 alone, deficit borrowers, bringing more than 400 billion baht to the treasury, still not enough, they need to apply for 200 thousand million additional baht, they have to fill the inventory. Otherwise, the inventory is running out, there is no inventory, “Sommai said.
Mr. Sommai also said: “I am sorry for the Prime Minister, I don’t know about the economy. And he believed the government officials that the Tank Treasury was not broken Because government officials want to appease the policy Therefore, giving incomplete information They had never seen the coffin. Where do the founders now have the power to buy? That the inventory was strong because the budget was rarely paid Loan statements are rarely disbursed and over the next 6 months you will see it increase the debt burden. And inventory will only flatten out “
Ministry of Finance Clarify The proposed 9% VAT hike means that the government’s current fiscal situation is stable and has sufficient liquidity to implement government policies. Current inventory remains at a solid level. Despite the impact of government policies to mitigate the impact and remedy for individuals and businesses during the COVID-19 crisis, the current inventory level remains sufficient to support the COVID-19 budget outlay. Government agencies and various policies to support the country’s economic recovery in the future, as well as debt over the budget at a manageable level. It is not an obstacle to the development of the country. And the level of public debt is still within the framework of state fiscal financing.
For VAT, which is a consumption tax that is related to the country’s economy. The tax increase will have a significant impact on public consumption. As a result of the rise in tax rates, the price of goods and services increases. It affects the reduction of people’s purchasing power This may aggravate the people in the economy affected by the COVID-19 virus outbreak, which raises the VAT rate from 7% to 9% and will reduce GDP by at least -0, 6% per year from the base case.
It also affects the rise in product prices. Headline inflation will increase 1.5% annually from the baseline scenario. The increase in the value added tax will cause the Thai economy to slow down even more, so the increase in VAT is important and sensible, so it should be considered everywhere and looked at at the right time.
Additionally, on August 25, 2020, the Cabinet approved an extension of the VAT rate reduction period of 7% for another year (from October 1, 2020 to September 30, 2021) to help reduce the burden. Cost of living for the people and encourage the continued consumption of the people.
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