The Cabinet has approved the Ministry of Finance's extension of the value-added tax rate reduction at 7% for another one year, through 30 September 2027, in order to ease the cost-of-living burden on the public and maintain Thai economic stability.
Today (27 July 2026), Ms. Ratchada Thanadirek, Spokesperson of the Prime Minister's Office, disclosed that the Cabinet meeting resolved to approve in principle the draft Royal Decree issued under the Revenue Code on the Reduction of Value-Added Tax Rate (No. ..) 2026, as proposed by the Ministry of Finance, in order to extend the value-added tax (VAT) reduction measure for a further one year.
Ms. Ratchada said that the key substance of the measure is an extension of the reduced value-added tax rate, which is due to expire on 30 September 2026, for a further one year, running from 1 October 2026 to 30 September 2027, by temporarily maintaining the value-added tax rate at 6.3 percent (excluding local tax) or 7 percent (including local tax) on a temporary basis for all sales of goods, provision of services, and importation in every case.
"Maintaining the value-added tax rate at 7 percent will help reduce the impact of the cost-of-living burden and stimulate consumption among the public, which will in turn boost business confidence in the Thai economy and allow private-sector investment within the country to expand in line with targets, as well as helping to foster a favourable business environment for the private sector," Ms. Ratchada said.
