Thailand energy, finance, tourism to boost revenue in fiscal 2024

Energy businesses, financial institutions, and tourism are expected to be the primary revenue contributors for the Revenue Department this year, according to its chief. These sectors have shown strong performance and are anticipated to generate significant tax revenues during the first nine months of fiscal 2024 (October 2023 to June 2024).

Revenue Department Director-General Kulaya Tantitemit highlighted that while these sectors are thriving, the real estate market has faced challenges, resulting in lower tax contributions. She expressed optimism that the sector might recover in the latter half of the year, spurred by government stimulus measures.

In April, the government implemented several real estate stimulus measures, including reducing mortgage and transfer fees to boost the sector. The transfer fee was slashed from 2% to 0.01%, and the mortgage fee from 1% to 0.01%.

Additionally, developers constructing homes priced up to 1.5 million baht received a corporate income tax exemption for three years. These initiatives, coupled with preferential interest rates on housing loans from the Government Housing Bank, have already injected 65 billion baht into the economy.

Kulaya also mentioned efforts to broaden the tax base. The Revenue Department contacted 100,000 individuals with unreported income, urging them to comply with tax regulations. Approximately 50,000 have responded, and the department plans to continue its follow-up efforts.

In a bid to increase revenue, the government amended tax laws to impose value-added tax (VAT) on goods valued under 1,500 baht, effective from July 5. Previously exempt from both import duty and VAT, this change is expected to generate around 1.5 billion baht.

Collection target

For fiscal 2024, ending in late September, the Revenue Department aims to meet its revenue collection target of 2.26 trillion baht. In the first eight months of this fiscal year (October to May), the government collected net revenue of 1.68 trillion baht, which is 26.2 billion baht or 1.5% below the target.

The government’s primary revenue sources remain the three tax departments. During the first eight months of this fiscal year, the Revenue Department collected 1.32 trillion baht, surpassing its target by 7.67 billion baht or 0.6%. However, the Excise Department collected 349 billion baht, falling short of its target by 53.4 billion baht or 13.3%. Meanwhile, the Customs Department exceeded its target, collecting 79 billion baht, which is 2.73 billion baht or 3.6% above the goal.

The overall financial outlook for the government hinges on the performance of these key sectors and the effectiveness of new tax measures. With continued monitoring and adjustments, the Revenue Department aims to achieve its fiscal objectives while supporting economic recovery and growth, reported Bangkok Post.