Bangkok: The Economic Party has formally expressed its opposition to a proposed increase in the Value Added Tax (VAT) from 7% to 10%, advocating instead for an income tax on foreign workers from the first baht earned.
According to Thai News Agency, Mr. Chris Potrananthan, Chairman of the Economic Party, alongside members of parliament and the party's team, revealed that despite the government's denial of any VAT increase, an examination of the Medium-Term Fiscal Plan (MTFF) submitted by the Cabinet Secretary on November 28, 2025, indicates a genuine proposal for such an increase. This plan, if implemented, would generate 300 billion baht annually for the government. The Economic Party argues that this increase would place an undue burden on citizens already struggling with an economic downturn, and rising oil and commodity prices, while their revenue remains stagnant.
Mr. Chris proposed an alternative solution for the government to increase revenue by taxing foreign workers. He suggested eliminating the current income tax exemption threshold of 150,000 baht, requiring taxes to be collected from the first baht earned. With approximately 4,000,000 foreigners working in the formal sector and the potential for this number to reach 10,000,000 when including undocumented workers, the party believes this measure could generate around 30 billion baht per year. Mr. Chris emphasized that these foreigners, who utilize public utilities and government services akin to Thai citizens, have largely not contributed to the tax system in Thailand.
In addition, Mr. Chris highlighted the significant issue of corruption in Thailand, which amounts to over 500 billion baht annually. He suggested that if the government could halve corruption, it could generate an additional 250 billion baht. This, combined with the 30 billion baht from foreign nationals, could significantly improve the country's fiscal situation without increasing taxes on the general population.