Excise tax collection exceeds target

[Thaivisa News]

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.

The excise revenues from beer sales are 960 million baht above target, followed by liquor sales (320 million baht), cigarette sales (595 million baht) and beverage sales (110 million baht).

The last month’s rise in the sales of alcoholic drinks is attributed to the advance stocking ahead of the long holiday for Songkran.

Vendors have placed advance wholesale orders for alcoholic drinks in anticipation of the enforcement of additional 2 per cent sin tax to contribute to the sports development funds.

While the stock lasts, the hoarding of alcoholic beverages is expected to boost the profit margin following the price adjustment due to the additional sin tax.

Songkran is one of the peak seasons for the sales of alcoholic beverages.

Last month saw, however, the drop in the collection of excise duties for car sales. The car excise revenues were 3 billion below target. The car demands remain weak due to the economic doldrums.

For the first half of fiscal year 2014-15, starting in October, excise revenues exceed target by almost 11 billion baht or 5.5 per cent.

The above-target revenues include those from petrol (19 billion baht or 59 per cent), alcoholic beverages (250 million baht), cigarette (4.6 billion baht).

In the same period, the excise revenues for car sales are 11 billion baht or 22 per cent below target. The excise duties for beer sales are 1.9 billion baht below target.

Due to the slackened economy, the combined revenues from income and excise taxes remain below target. The Finance Ministry is mapping out ways to improve on tax collection for this fiscal year’s second half.