On 17 September 2024, the Thai cabinet approved another year of extension for the reduced value added tax (“VAT”) rate of 7 per cent (comprising 6.3 per cent VAT, and 0.7 per cent local tax), so that such rate will continue to apply until 30 September 2025. The extension is approved with an aim to mitigate the effect from the sluggish economic growth and the household/business sectors’ debts, which discourage the consumptions. A new Royal Decree will be issued and announced in the government gazette to bring into effect such extension. Without a further extension next year, the original VAT rate of 10 per cent (comprising 9 per cent VAT, and 1 per cent local tax) will apply from 1 October 2025.