Dr. Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, stated that increasing the value-added tax (VAT) back up to 10% is one of the approaches under the fiscal capacity enhancement plan. The Cabinet has already approved the 5-year Medium-Term Fiscal Framework (MTFF) (2026–2030) on November 16, 2025, which is considered another key measure to boost the confidence of foreign investors.
However, under the current economic conditions, Thailand is not yet prepared for an increase in VAT, so the government affirms it will not raise the tax during 2025–2026. Although the medium-term fiscal plan outlines an initial VAT rate hike from 7% to 8.5% by 2028 and a further increase to 10% by 2030, implementation depends on economic readiness.
The fiscal capacity enhancement plan includes four main strategies: tax reform, reduction of government expenditure, utilization of infrastructure funds to drive investment, and maintaining fiscal discipline. The government aims to lower the budget deficit to be lower than 3% of GDP by 2029, down from the current 4.4% of GDP.
“We must consider the country’s readiness, but the plan is already in place. We also need to calculate whether, if by that time Thailand’s economy has not recovered enough to allow a VAT increase, there will be other compensatory measures—either by increasing domestic revenue or cutting expenditures—which are written into the medium-term fiscal plan. I believe this plan will help build confidence, as there must be measures to compensate,” Dr. Ekniti stated.
Meanwhile, Mr. Narit Therdsteerasukdi, Secretary-General of the Board of Investment (BOI), stated that from November 27–29, 2025, Dr. Ekniti is scheduled to lead an official delegation to Japan. This roadshow aims to promote investment among major investors—the first overseas visit since his appointment. The BOI, in collaboration with SMBC Bank and Japanese business partners, will organize the “Thailand-Japan Investment Forum 2025” at Tokyo Kaikan, Tokyo.
This event will present the government’s policy direction and various measures to promote Thailand’s potential as a regional investment hub in future industries. At present, over 400 leading Japanese investors and executives have registered to attend the forum.
