Excise tax collection above target

[webfact]

Excise tax collection above target



BANGKOK: -- Excise tax collection in March rose 15% over the target, the Excise Department said.

It said excise tax collected in March this year or the sixth month of the 2015 fiscal year was 5.8 billion baht or 15% over the target.

It attributed the rise to the increased excise tax on diesel which was 6.8 billion baht above the target or equivalent to 123%.

Moreover trade hoarders also added to increased excise tax collection in March.

According to Thailand Sports Act which was passed by the National Legislative Assembly and already announced in the Royal Gazette, alcoholic drink and tobacco prices will be higher by two percent possibly in March as exporter, importer and producer are mandated to contribute 2% of their annual excise tax to the Sports Fund.

This prompted traders to hoard.

The Excise Department reported over the target excise collection on beer of 960 million baht, on liquor of 320 million baht, on tobacco of 595 million baht, and on beverages of 110 million baht as traders rushed to hoard them to sell during the Songkran festival and prior to the enforcement of the 2% contribution of excise tax to the Sports Fund.

But excise tax collection in March on automobiles is 3 billion baht below target as the result of the economic slowdown.

However it was optimistic that April collection could improve due to high car sales during the Motor Show held between end of March and early of April.

Source: http://englishnews.thaipbs.or.th/excise-tax-collection-above-target


-- Thai PBS 2015-04-06

[FredNL]

Well the alcohol and tobacco prices went up with 2 THB (more than 2 percent)

At many bars alcohol prices went up 5 or 10 THB.

[topt]

I noticed that a case of 12 large Leo had gone up from 572 to 584 baht in Makro last week when I bought - so only 1 baht per large bottle. Unless there is another increase coming..........

[Pib]

Well the alcohol and tobacco prices went up with 2 THB (more than 2 percent)

At many bars alcohol prices went up 5 or 10 THB.

You are hallucinating....they only charge 5 to 10 baht more when you are really drunk, don't check the bill, or count your change.

[elgordo38]

Quote However it was optimistic that April collection could improve due to high car sales during the Motor Show held between end of March and early of April.

I think I read a previous comment on how the new car sales break down and I think the writer was right. A lot of people pressing their nose against the windows wishing and dreaming but when it came time to talk to their friendly bank manager well that is were reality kicked in. Then there is 2016 when a lot of people will default on their car payments. Its great to want the best of the best but the bubble pops when it comes time to pay. There are many things in life that I want but when I check my wallet the bahts are not there and I do not borrow money as I do not trust banks or banksters.

[Srikcir]

"Excise tax collection in March rose 15% over the target"

What's the point being made with this announcement?

The additional excise tax was not the result of any government strategy, step up in enforcement, nor better collection performance. Overall tax collection has again fallen short of expectations; the inheritance tax is dead; and the land & building tax is so watered down as to be nonproductive when it goes into effect next year.

So the price of diesel goes up and more is collected for excise tax - an automatic result. NLA passes a higher tax on alcoholic drink and tobacco prices that hits the average Thai taxpayer who pay it if they want the product, almost like a VAT - an automatic result.

It seems more like the Junta is desparate to find some "ggod news" in its handling of the economy and replenishing the treasury that it keeps dipping its fingers into for "gifts" and populist programs. Yingluck would have been envious.

[webfact]

Excise tax collection exceeds target

Bangkok – The collection of excise duties is 5.8 billion baht or 15 per cent above the target for March, Excise Department officials said.

The higher-than-expected excise revenues have been attributed the duty hike for diesel which yields 6.8 billion baht in additional revenues, an increase of 123 per cent.

Full story: http://www.thaivisa.com/forum/topic/815400-excise-tax-collection-exceeds-target/

[Pib]

So the price of diesel goes up and more is collected for excise tax - an automatic result.

Not necessary as the govt frequently changes the excise tax, oil fund contribution amounts, etc. When the price of oil goes down it actually gives the govt leeway to raise taxes if they desire and apparently have been doing recently...but not so much as to cause the price of fuel to increase.

For example the current EX-refinery cost of diesel is 15.5491 (cost to manufacturer) with an excise tax of 4.25...and in the various other taxes like oil conservation fund, VAT, marketing margin, etc. and you end up with the current retail price of 25.09 as of 7 Apr. But go back a month to 6 Mar when the EX-refinery cost of diesel was 16.8260 with an excise tax of 3.25 plus other taxes the retail price was 27.39 on 6 Mar. Spreadsheets showing these changes are available at this EPPO webpage: Link. Look under the heading STRUCTURE for Price Structure.

Basically the govt has been taking advantage of being able to lower final cost of diesel while at the same time raising the excise tax due to dropping price of crude oil. Since the govt is able to change the amount of tax applied literally on a daily basis, they have a lot of control over the final price of fuel and the taxes they collect.