Bank of Thailandís Governor M.R. Pridiyathorn Devakula
has conceded the bank might need to revise its economic growth estimate this
year if the government decided to cut the value-added tax (VAT).
He said the bank forecast that this yearís economy
would grow 3.5-4.5% on the assumption that VAT stood at 7% at present.
The projection was made without an expectation that the
government would adjust the tax rate. So, should the rate be adjusted, the
economic growth estimate must be revised.
The BOT chief said the governmentís decision to cut VAT
would help boost peopleís spending significantly, which could contribute
to the further growth of the countryís economy.
On the progress in the early debt repayment with the
International Monetary Fund, M.R. Pridiyathorn said the schedule remained
intact as the first of the four installments would be repaid on February 14.
He reiterated the early debt repayment had already
factored in the possible impact from a war in the Middle East. (TNA)