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'Sin' taxes to finance fund for disabled

By Wichit Chaitrong

The Nation

Published on January 8, 2010

A new fund for the disabled is being planned, with the Excise Department financing it through "sin" taxes.

Deputy Finance Minister Pruttichai Damrongrat yesterday said the new fund would be financed by excise taxes on alcohol and cigarettes, the same as the Thai PBS television network and the Thai Health Promotion Foundation.

He said the Thai Health Promotion Foundation was entitled to more than Bt2.5 billion in funding this year.

As part of social contributions, non-profit organisations donating money to three types of charity organisations are entitled to tax privileges. At present, some 100 of them have joined the scheme.

Meanwhile, he insisted the Excise Department did not plan to increase the tax rate on beer and liquor at present, as its tax collections had increased.

He said excise tax collection was expected to exceed the target by 10-15 per cent this year. The department estimates collections of Bt290 billion for the present fiscal year.

In the first three months of fiscal 2010 - October to December - the department's tax receipts exceeded the target by Bt15 billion, he said.

Rising sales of cars and light trucks have contributed to the surge in tax revenue, and the trend is expected to continue in line with the economic recovery, he said.

"We will not increase tax rates as we're satisfied with rising tax revenue," Pruttichai said.

A source said the Fiscal Policy Office was studying a new tax structure for alcoholic beverages. The Excise Department has already proposed new tax rates that take into account alcohol content, the source said.

Meanwhile, director-general Areepong Bhoocha-oom said even though oil prices had risen, the department would not yet consider cutting oil tax rates.

The telecom tax will not be reintroduced unless it could apply to all parties equally. At present, telecom service providers must pay a concession fee to two state enterprises: TOT and CAT Telecom.

Finance Minister Korn Chatikavanij earlier said levying a telecom tax could be one of the solutions if telecom providers transferred their customers to third-generation (3G) broadband mobile services, which would end the existing telecom concessions and result in revenue loss for the government.

The government wants to clear up all issues related to concession disputes before the start of 3G services.

-- The Nation 2010-01-08

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