Of course they can implement it.
People not resident at the address of their bluebook can be tracked (RD and SocialSecurity both have officers who investigate). They will likely be on a relatives blue book (we have two of my wife's relatives on our blue book that don't live here); RD can pay a visit. They will likely have a phone account, bank account, social security number, etc. There may be some that slip through the gaps, but the majority will be in RD's net.
How will the illiterate do a tax return (online or paper form version)? Same way my mother-in-law and brother-in-law deal with bureaucracy; they go see the phu yai baan in the village for help, or they could go to the local RD in the district for help.
Will the thais all do a tax return. That depends on the individual and how the RD will police it. Some in my wife's family would probably do a tax return if they thought they must, others I know wouldn't.
I don't know thais you say. In my 4th decade here, married to a thai for 3 decades, familiar with her family in bkk and the rice farmers relatives in their isaan village, I employ thais, i do tax returns and have been to RD office many times.