The rate will not affect revenue projections for fiscal years 2022 and 2023, because income estimates have been calculated in the budget preparation period.
Meanwhile, the Finance Ministry told the Cabinet that the 7 per cent rate will not affect revenue collection for fiscal years 2021 and 2022, since it has already been incorporated in the revenue projection.
Every 1 per cent hike in VAT increases the government's income by about 70 billion baht.