BANGKOK, THAILAND – Plans to raise Thailand’s value-added tax triggered fierce warnings from opposition lawmakers about the impact on poor households and the wider economy.
Tax shock raises fears among low-income families
The government’s intention to lift VAT from seven to ten percent had caused deep concern across the country, according to opposition politicians. The news reportedly emerged from internal financial planning documents that an opposition member said confirmed the proposal.
Although authorities described the papers as mere studies, anxiety on Thailand’s streets reportedly grew. Families feared for their daily subsistence and the future of their children if prices rose across the board.
Cost-of-living surge predicted
Opposition lawmaker Kris Potranan told parliament that every supermarket purchase would become more expensive if VAT increased by three percentage points. He warned that the planned step would relentlessly push up living costs in all areas.
Potranan argued that households would be left with less disposable income, which could paralyze overall economic activity. Experts cited in the debate expected falling production and the loss of many jobs if private consumption weakened.
Warning of economic downturn
The MP painted a bleak outlook for the country’s economic future if the tax rise went ahead. He said the higher VAT rate could reduce Thailand’s economic output by around one percent.
If citizens lost purchasing power, Potranan warned that the domestic market could collapse. Under such a tax burden, he argued, the entire country would suffer severely.
Opposition targets massive corruption losses
Instead of raising VAT, the opposition demanded a tougher fight against corruption. According to the criticism, enormous sums disappeared every year through mismanagement and bribery into clandestine financial channels.
“Close these leaks before you take money from the poor,”
said Kris Potranan, opposition MP.
He argued that more efficient action against graft could stabilize the state budget without additional pressure on citizens. Redirecting funds lost through corruption was presented as an alternative to taxing ordinary people more heavily.
Taxing foreign workers to ease pressure on locals
Another proposal put forward in the debate called for systematic taxation of foreign workers. According to the opposition, the state was currently missing out on important revenue that should benefit the Thai population.
Supporters of the plan said these measures, combined with anti-corruption efforts, could replenish public finances. They argued this approach would ease pressure on local taxpayers and deliver greater fairness for Thai citizens.
Public anger over fairness of tax burden
The discussion also focused on the perceived injustice of asking ordinary people to pay more tax while huge sums vanished in opaque networks. Critics questioned whether it was acceptable to increase the burden on low-income groups under such conditions.
Opposition voices urged the government to win back public trust by prioritizing the closure of corrupt “dark channels.” Only then, they argued, should any debate about higher consumption taxes proceed.