Customs Dept lowers forecast on tax revenue due to FTAs

[webfact]

Customs Dept lowers forecast on tax revenue due to FTAs



BANGKOK, 5 July 2016 (NNT) - The Customs Department has projected that its tax revenue will fall short of its target by six billion baht this financial year, due to free trade agreements (FTAs).

Director-General of the Customs Department Kulit Sombatsiri explained that import tariffs for certain products have been reduced to meet the FTAs. Trade deals have cost Thai customs 1.2 billion baht in lost tax revenue in June and the department is projected to lose another 1.2 billion baht this month. Mr. Kulit estimated that the total loss for the entire fiscal year to accumulate to six billion baht.

As a result, the projected tax revenue for 2016 has been revised down to 114 billion baht from the department’s initial target of 120 billion baht. According to Mr. Kulit, better technology and legal amendments will be introduced to enable the department to collect tax more effectively.

His comments were echoed by Finance Minister Apisak Tantivoranwong, who cited the need to increase the efficiency of the tax collection process.

The Customs Department has also proposed to the Ministry of Finance to let customs officials use a mobile application to help them calculate the amount of import tax.

-- NNT 2016-07-05

[Brer Fox]

Looks like the PM's recent budget has just gone up in smoke.

[Redline]

They didn't calculate this before they signed agreements? If they are short 1.2 billion a month, that is not -6 billion a year~it's over -14 billion. There goes the completely unnecessary submarine!

[elgordo38]

Looks like the PM's recent budget has just gone up in smoke.

We may be down but we are not out. We have a plan B. It would be nice to see some reduction in prices on something?? due to these free trade agreements. I have seen nothing to this point. All I see is the fact that bananas are now the same price at my local supermarket but half the size of the previous crop. They are now the size of the midget bananas. Must be reductions on high end merchandise.

Edited July 5, 2016 by elgordo38

[jamesbrock]

Gee, a developing nation being screwed over (some more) by larger, richer nations via FTA's - whodathunkit??

This announcement seems like it's a bit of a surprise - I wonder what they thought—rather, were convinced—was going to happen?

[heybruce]

"His comments were echoed by Finance Minister Apisak Tantivoranwong, who cited the need to increase the efficiency of the tax collection process."

They could require financial disclosure from all government employees, including the military and police, then tax their full income, not just their official income. That should bring in a lot of new revenue.

Edited July 5, 2016 by heybruce