1 January 1992

Confusion greets VAT duties

The government began collecting a 7% value-added tax (VAT), replacing a business tax that had been applied for the previous two decades.

Authorities pledged to take legal action against manufacturers and distributors who took advantage of consumers under the excuse of the value-added tax amid immediate complaints of higher prices. Finance Minister Suthee Singhasaneh said the Commerce Ministry was conducting a survey of the cost structures of consumer goods and its findings would be used to single out dishonest traders for legal action.

Mistakes in tax invoices, either intentional or otherwise, would result in up to seven years in jail and fines of up to 200,000 baht for business owners. Suthee’s promise of action came as buyers interviewed by the Bangkok Post complained about increased prices at wholesalers.

Suthee assured the public that the confusion over VAT would be over in a few months, when the free-market mechanism would take control of the prices. He admitted that the confusion was caused by inadequate information supplied to the public.

1 January 1992

Confusion greets VAT duties

The government began collecting a 7% value-added tax (VAT), replacing a business tax that had been applied for the previous two decades.

Authorities pledged to take legal action against manufacturers and distributors who took advantage of consumers under the excuse of the value-added tax amid immediate complaints of higher prices. Finance Minister Suthee Singhasaneh said the Commerce Ministry was conducting a survey of the cost structures of consumer goods and its findings would be used to single out dishonest traders for legal action.

Mistakes in tax invoices, either intentional or otherwise, would result in up to seven years in jail and fines of up to 200,000 baht for business owners. Suthee’s promise of action came as buyers interviewed by the Bangkok Post complained about increased prices at wholesalers.

Suthee assured the public that the confusion over VAT would be over in a few months, when the free-market mechanism would take control of the prices. He admitted that the confusion was caused by inadequate information supplied to the public.