BANGKOK, THAILAND – The Thai government denied rumours of a planned value-added tax increase to 10 percent and stressed that any large emergency loan would be taken only in line with legal and administrative procedures.
No panic: VAT to remain unchanged
Reports circulating on social media had recently claimed that value-added tax would rise from the current 7 percent to 10 percent. Government spokesperson Ratchada Thanadirek publicly dismissed these claims as fake news.
Officials said the administration was instead considering measures to reduce living costs for citizens. They underlined that the focus was on easing the burden on households rather than raising it through higher taxes.
Multi-billion baht loan under discussion
In parallel, debate emerged over a proposed emergency loan worth 500 billion baht. The sum was intended as a buffer to support the Thai economy during periods of crisis.
Critics accused the government of sidelining senior officials in the Finance Ministry during the planning process. They argued that key bureaucrats had allegedly not been properly consulted on the proposal.
Legal basis, not unilateral action
The spokesperson explained that Deputy Prime Minister Pakorn Nilprapan had only outlined the legal feasibility of such borrowing. Under Article 172 of the constitution, an emergency loan was permissible to safeguard economic stability in times of crisis.
She pointed out that a similar mechanism had already been used successfully during the severe Covid‑19 pandemic. According to the government, this precedent showed that there were no legal obstacles to the current proposal.
Why a financial cushion is seen as vital
Deputy Prime Minister Pakorn described the present situation as precarious enough to warrant consideration of an emergency loan. State reserves were said to be low, while global instability, including conflicts in the Middle East, was putting additional pressure on the country.
Officials also warned of the looming “Super El Niño” weather phenomenon. It posed a serious threat to agricultural yields and could trigger unpredictable costs for the Thai economy.
Cooperation between politicians and civil servants
Responding sharply to claims that civil servants were being bypassed, Ratchada insisted on the close cooperation between the government and the bureaucracy. She said both sides listened to each other and worked together on economic decisions.
“The claim that decisions are being made without the responsible experts is a gross exaggeration.”
said Ratchada Thanadirek, government spokesperson.