Thai revenue collection target for 2015 adjusted down

[webfact]

Revenue collection target for 2015 adjusted down



BANGKOK: -- The Revenue Department has adjusted its collection target down from 1.97 trillion baht for fiscal 2015 to 1.81 trillion baht after large corporations reporting declining revenues, global oil price falls, and reduced import duties.

The adjustment of revenue collection down by 160 billion baht was to reflect a realistic revenue target.

Revenue Department director-general Prasong Poontaneat said declining global oil prices had deterred oil-producing companies from drilling, keeping it in stocks to reduce costs.

He said some companies that previously reported profits of four billion baht had reported losses last year.

He said overall revenue tax collection from the petroleum sector is expected to fall by 10-20 billion baht this fiscal year.

Large Japanese firms companies were also affected by the economic impasse, he said

Besides, recent elimination of import duties for more than 2,000 items used as materials for further production is another factor shrinking tax revenue.

Lost duties were likely to cause tax revenue collection to drop by 30 billion baht, he said.

Earlier revenue target of the department was 1.97 trillion baht for fiscal 2015, up by 4% or 74.4 billion baht from fiscal 2014’s target.

But after tax revenue collected for fiscal 2014 fell short by 160 billion baht or 8.5% from its target of 1.97 trillion baht, a more realistic tax revenue target was then adjusted to 1.81 trillion baht, down by 160 billion.

The new target is 75.1 billion baht higher than the actual tax collected in fiscal 2014.

However he said the target for fiscal 2015 is still considered high, given the ongoing economic conditions.

He was confident the economy has started improving gradually due to higher revenue collected from stamp duties and specific business tax.

Source: http://englishnews.thaipbs.or.th/revenue-collection-target-2015-adjusted


-- Thai PBS 2015-02-24

[clockman]

Close scrutiny is required! Follow the money. Check with the luxury car drivers? Remember 300 cars vanished from customs warehouse?

[ChrisY1]

In normal Thai business style....they'll probably raise tax..!

[shirtless]

It didnt take long for the figures to drop I am surprised that TAT hasnt posted a downgrade yet

[lungbing]

And yet the baht remains strong.

[Srikcir]

"The new target is 75.1 billion baht higher than the actual tax collected in fiscal 2014....However he said the target for fiscal 2015 is still considered high, given the ongoing economic conditions."

As the Government was virtually shutdown during the fiscal 2014 (October 2013 through September 2014), it shouldn't had been difficult for the Junta to surpass tax collections for fiscal 2015. That's no real accomplishment - just political spin.

More importantly is the admission that the economy is not going to be much better in 2015 than it was in 2014. Government spending accounts for 20% of GDP. With exports that account for 70% of GDP continuing to flatline or decline, a shortfall in government revenues will not allow the government to support a 3.5-4% GDP growth for 2015.

Thailand will be getting close to zero GDP growth, if not suffer deflation.

[Thai at Heart]

I love how they have a target, not a prediction for raising this revenue.

Says a lot of their attitude to the issue

[halloween]

"The new target is 75.1 billion baht higher than the actual tax collected in fiscal 2014....However he said the target for fiscal 2015 is still considered high, given the ongoing economic conditions."

As the Government was virtually shutdown during the fiscal 2014 (October 2013 through September 2014), it shouldn't had been difficult for the Junta to surpass tax collections for fiscal 2015. That's no real accomplishment - just political spin.

More importantly is the admission that the economy is not going to be much better in 2015 than it was in 2014. Government spending accounts for 20% of GDP. With exports that account for 70% of GDP continuing to flatline or decline, a shortfall in government revenues will not allow the government to support a 3.5-4% GDP growth for 2015.

Thailand will be getting close to zero GDP growth, if not suffer deflation.

Tax collection virtually stopped for a year? Shops stopped collecting VAT, income tax wasn't collected, and companies had a tax holiday?

Crikey! Why didn't I notice that?

[hawker9000]

And yet the baht remains strong.

Keeping the baht generally pegged where they want it seems to be something Thailand does relatively well, in recent times at least.