"Revenue Department" has struggled to collect taxes over the past six months, exceeding its target by only 118 million baht. Officials lament that the sluggish economy and stalled exports have made tax collection challenging, prompting efforts to enhance collection efficiency in hopes of meeting targets.

          On May 7, 2019, Mr. Aekniti Nitithanprapas, Director-General of the Revenue Department, revealed that tax collection for March 2019, the sixth month of the fiscal year 2019, fell significantly short of targets. This was largely due to lower-than-expected collections from value-added tax (VAT), specific business tax, and stamp duty, reflecting a decrease in consumer spending and a slowdown in investment.

          Furthermore, the Revenue Department has been signaling lower-than-targeted tax collections since February 2019, attributed to a sluggish economy and the election period, which has led to consumer and investor uncertainty.

         "I have previously reported the signs of a slowdown in tax collection due to the economic downturn to Deputy Prime Minister Somkid Jatusripitak. Therefore, the government needs to implement mid-year measures to support the economy and minimize the impact on economic momentum," Mr. Aekniti stated.

          For the fiscal year 2019, the Revenue Department has set a tax collection target of 2 trillion baht, based on an 8% growth in exports and a 4% growth in the economy. It is anticipated that the targets can still be met, even if export and economic growth do not reach the expected levels. In the early months of the fiscal year, the Revenue Department had accelerated tax collection efficiency, resulting in collections exceeding targets, and plans to further enhance collection efficiency in the remaining months.

          In the first half of the fiscal year 2019, the Revenue Department collected 823 billion baht, exceeding the budget document target by 24.5 billion baht. Individual income tax fell short of the target by 520 million baht, while corporate income tax exceeded the target by 1 billion baht, VAT exceeded by 1.2 billion baht, specific business tax exceeded by 2.3 billion baht, and stamp duty exceeded by 420 million baht.

          However, the Ministry of Finance has raised the Revenue Department's tax collection targets. Thus, the tax collection for the past six months, compared to the targets set by the Ministry of Finance, exceeded by only 118 million baht.

 

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