However, the final decision on the tax hike will be made by the Cabinet after the NLA submits its proposal for approval on Thursday.

The proposed VAT hike is part of tax reform package proposed by NLA’s committee on economy, finance and fiscal.

Increasing VAT by 1 per cent would result in Bt60 billion to Bt70 billion more in government revenue, according to the committee.

General Prayut Chan-o-cha’s government has maintained VAT at 7 per cent for fear of public opposition.