Bangkok: The government clarified that reports circulating about a 10% VAT increase are false, emphasizing that their focus remains on reducing costs for the public.

According to Thai News Agency, Ms. Ratchada Thanadirek, spokesperson for the Prime Minister's Office, addressed the misinformation spreading through social media, asserting that messages claiming a VAT hike from 7% to 10% are fake news. She emphasized that the government is only considering strategies to alleviate financial burdens on the public.

In response to criticism regarding the government's decision-making process, particularly the alleged bypassing of civil servants to issue an emergency decree for borrowing money without informing high-ranking officials in the Ministry of Finance, Deputy Prime Minister Pakorn Nilapraphan clarified the legal basis for such actions. He stated that borrowing money through an emergency decree is permissible under Article 172 of the Constitution, which allows for such measures in cases of emergency or urgent necessity to maintain the country's economic stability. He cited the COVID-19 crisis as a precedent where similar actions were taken legally.

When questioned about the current situation meeting the criterion of Article 172, Deputy Prime Minister Pakorn Nilapraphan affirmed the necessity. He highlighted the limited cash reserves, the impact of the situation in the Middle East, and the anticipated effects of a super El Ni±o on agricultural production as factors that necessitate having reserves for emergencies.

The government stressed the importance of collaboration between officials and civil servants in decision-making processes, emphasizing that no decisions should bypass civil servants to ensure effective governance.