Title: Draft Royal Decree Issued under the Revenue Code on Reduction of Value-Added Tax (No…), B.E. … (Extension of Value-Added Tax (VAT) Reduction)

The cabinet approved in principle the draft Royal Decree Issued under the Revenue Code on Reduction of Value-Added Tax (No…), B.E. … (Extension of Value-Added Tax (VAT) Reduction) as proposed by Ministry of Finance.

Gist
The draft Royal Decree Issued under the Revenue Code on Reduction of Value-Added Tax (No…), B.E. … (Extension of Value-Added Tax (VAT) Reduction) prescribes extension to the reduced VAT rate for another year from October 1, 2025 to September 30, 2026. The reduced VAT rate is 6.3% (excluding local tax) and 7% (including local tax).Extension of the Value Added Tax (VAT) reduction will alleviate people’s plight on cost of living and help stimulate public consumption.

Title: Solutions to surplus of carton milk and assistance provided to dairy farmers and milk product producers

The cabinet acknowledged solutions to surplus of carton milk as proposed by Office of National Farmers Council.

Gist
Office of National Farmers Council reported that the Dairy Co-operatives Federation of Thailand Limited was facing a problem of a surplus of raw milk that cannot be distributed, and decided to process this surplus into UHT milk. This has resulted in an overstock of 113,870,387 cartons of milk, worth approximately 800 million Baht.

To address this issue, Office of National Farmers Council has requested the cabinet for the allocation of FY2025 central fund for emergency and contingency, at the amount of 800 million Baht, to be distributed to local administrations (500 million Baht), and Office of the Private Education Commission (300 million Baht) for the purchase of overstocked milk cartons, allowing more students to receive milk through the school milk program.Ministry of Agriculture and Cooperatives (MOAC) and the Milk for Children and Youth Committee are tasked to coordinate, monitor, and evaluate the implementation of this plan with concerned agencies.

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Title: Report on the Industrial Economics Status for June 2025

The cabinet acknowledged Industrial Economic Report for June 2025, as proposed by Ministry of Industry.

Gist
Based on the report, manufacturing production index (MPI) for June 2025 is at 97.35, an increase of 0.6% YoY. Key industries that contribute to the expansion were automobiles (+17.0%); electronic parts and circuit boards (+6.2%), and palm oil (+9.8%).Key industries that saw the most contraction in June 2025 were conditioners (-14.2%), petroleum (-3.2%), and non-alcoholic drinks (-14.0%).

Title: Signing of the Declaration to Establish the ASEAN Prosecutors/Attorneys General Meeting

The cabinet approved the Declaration to Establish the ASEAN Prosecutors/Attorneys General Meeting (APAGM), and the attached TOR. The Prosecutor General or a representative is authorized to sign the Declaration. This is as proposed by Office of the Attorney General.

Gist
The Declaration demonstrates collective intent to study the establishment of an ASEAN prosecutorial institution, as a new ASEAN Sectoral Ministerial Body to strengthen prosecutorial cooperation in addressing transnational crimes, and enhancing ASEAN capacity in promoting and upholding the rule of law, justice, and rules-based ASEAN.
Members of APAGM, comprising Attorneys-General from all 10 ASEAN member states, will meet and sign the Declaration on September 15, 2025 in Bali, Republic of Indonesia.