Discussions about raising taxes, including the value-added tax increase, began as early as July 1, 2024, rather than January 1, 2025 as previously stated in the updated state budget. According to a source from the Ministry of Finance, discussions have also started about increasing other taxes like income tax and real estate taxes. However, the source emphasized that these discussions are still in their infancy stages.
The need to raise taxes is due to a significant increase in defense spending and subsequently, the state budget deficit. The Ministry of Finance is exploring different avenues to address this issue, including accelerating the implementation of the value-added tax increase. Further details and concrete plans are expected to emerge as discussions progress.
As tax changes can have far-reaching effects on the economy and individual taxpayers, it will be crucial for the Ministry of Finance to carefully consider all options and potential consequences before finalizing any decisions. Tax policy plays a critical role in government revenue generation and economic stability, making it essential to approach any changes with caution and thorough analysis. The impact of these potential tax increases will be closely monitored by experts and the public as discussions continue.
