Connect with us

Phuket

Phuket tax revenue plummets during pandemic – VIDEO

Caitlin Ashworth

Published 

 on 

The Covid-19 pandemic led has tax revenue in Phuket to be cut in half. Border closures, banning international tourists, has caused the tax revenue for the popular island destination to plummet. From January to August, total tax receipts year on year fell by more than 46%, according to data from the Phuket Area Revenue Office, obtained by The Phuket News.

In January, while the virus was still concentrated in China, Phuket’s tax revenue year on year increased by 5.38%, rising from 1.03 billion baht to 1.09 billion baht. As the coronavirus spread, by the end of the month, tax revenues fell by 5.22%, going down to 1.03 billion baht.

The numbers plunged even more when the outbreak spread over the world and Thailand closed its borders, banning international tourists. In March, when the Covid-19 outbreak was declared a pandemic by the World Health Organisation, Phuket’s tax revenues fell by 42.31%, going down from 1.13 billion baht to 797 million baht. The next month, they drastically dropped 296.86%, going down from 1.24 billion baht to 313 million baht.

Tax revenue continued to drop…

  • May – year on year decrease by 175%, dropping from 1.36 billion baht to 495 million baht.
  • June – year on year decrease by 210%, dropping from 1.72 billion baht to 555 million baht.
  • July – year on year decrease by 104%, dropping from 861 million baht to 422 million baht.

There was a year on year increase in April, going up 38.5% from 1.12 billion baht to 1.81 billion baht, but The Phuket News notes that this increase was because the deadline for filing tax returns was postponed as a relief from financial trouble brought on by the pandemic.

Tax receipts dropped year on year from January through August…

  • Personal income tax receipts fell by 40.8%.
  • Corporate income tax fell by 68.9%.
  • VAT receipts fell by 32.5%.
  • Special business tax receipts fell by 77.4%.
  • Revenue stamp receipts fell by 44.4%.
  • Tax revenues categorised as “others” fell by 72.8%.

SOURCE: Phuket News

Catch up with the latest daily “Thailand News Today” here on The Thaiger.

 

Want more from the Thaiger family?

📱 Download our app on Android or iOS for instant updates on your mobile
📧 Subscribe to our daily email newsletter
👍 Like/Follow us on Facebook
🔔 Subscribe to or Join our YouTube channel for daily video updates

7 Comments

7 Comments

  1. Avatar

    James Scott

    Thursday, October 15, 2020 at 2:29 pm

    Expect it to worsen.

    Thailand is likely to become one of the poorest countries in south east Asia as this continues, with the working class being impacted more than anyone else. Phuket is a dead zone at this point, as are Pattaya, Chiang Mai and any other place in Thailand dependent on tourism. Without taxes, these cities will not survive.

    Every non-Thai I know except one has now left the country, and every Thai I know living in Phuket has moved back to northern Thailand.

    Civil war is on the horizon for Thailand as the economy collapses. Farangs still living there may want to think about leaving as things will be very bad in Thailand in late 2020 and on into 2021.

    It is a tragedy as Thais deserve much better than the corrupt government they currently have. A government killing the country’s economy and its people’s future.

    • Avatar

      Toby Andrews

      Thursday, October 15, 2020 at 4:32 pm

      I totally agree Mr Scott.
      They could save money by firing all the civil servants that still shine the seats of their trousers in air conditioned offices.
      There is a much smaller population, so there should be a much smaller number of paper shufflers.
      And how about the police? They do not need as many now. Fire a few.
      Let them seek gainful employment out on the high seas all night fishing.
      There will be a lack of brown envelopes, but a healthy life of honest toil in the open air is good for the soul.
      Let them keep their guns so that they can shoot any fish close to the surface. They could then scoop them out with nets.

      lol

  2. Avatar

    Perceville Smithers

    Thursday, October 15, 2020 at 3:30 pm

    How old is that pic? The Pizza Company is on the other side (opposite) now.

    Gov greed instead of a sensible plan to allow tourists back in.

    1. Two Covid-19 test prior to departure (covering the incubation period and the 2nd 72 hrs prior to takeoff).

    2. Test on arrival at the airport.

    3. Thailand accepts insurance from known, intl companies not just Thai.

  3. Avatar

    Thomas

    Thursday, October 15, 2020 at 4:02 pm

    After the last 24hours, it will become much much worse for all of Thailand. There is no Thailand 4.0 anymore, they do a reset to Thailand 1.0 – Unfortunate and sad for most, but they want it like that.

  4. Avatar

    Jitendra Bahubali

    Thursday, October 15, 2020 at 4:20 pm

    All borders closed Because the fools and idiots responsible for attracting tourist are the ones repelling them. I am talking about Thailand specifically. Look at the statements of the clowns every day. Just a big ridiculous joke everyday suggesting something like 14 day quarantine but can go out of the hotel but cannot be near to the Thai public and one officer with them always on the special roads only for tourists. They just vomit ? everyday all the pathetic thoughts they have at night while drinking.

  5. Avatar

    EdwardV

    Thursday, October 15, 2020 at 9:27 pm

    Water is wet. Considering Phuket gets some 90% of their revenue from tourist, and there is no tourism it only makes sense revenue would plummet. It has to be dawning on those in charge, the high season is lost. All these businesses who were limping along wait for it, who shut down to save cost till it arrived, they are all dead men walking. This unfortunately goes for all the tourist sections of the country, and to an extent the entire country. You cut off 20% of your GDP you might last several months, but at some point the bank comes calling. And when they don’t get their money, they start failing. There has to be tens of thousands of NPLs out there, zombie loans and deeds the banks are carrying so as to not fail themselves. The government has to know this, yet they continue to come up with crazy plans to reopen the tourist sector that are designed to fail. They create fictitious Chinese tour groups who will come in to save the day. Makes you wonder are they living in Bizarro world where everything is backwards? Regardless of what it is, there is no denying the fact the economy cannot stay locked down. Hopefully they come up with a plan and quickly. Unfortunately I think their focus is going to be somewhere else for the time being.

  6. Avatar

    West Tiger

    Friday, October 16, 2020 at 12:33 am

    The blame for this lays firmly at the door of the Government. Thailand under this government is heading into the abyss.
    Things are going to get a whole worse for the average Thai in the very near future.

Leave a Reply

Your email address will not be published. Required fields are marked *



Read more headlines, reports & breaking news in Phuket. Or catch up on your Thailand news.

Caitlin Ashworth is a writer from the United States who has lived in Thailand since 2018. She graduated from the University of South Florida St. Petersburg with a bachelor’s degree in journalism and media studies in 2016. She was a reporter for the Daily Hampshire Gazette In Massachusetts. She also interned at the Richmond Times-Dispatch in Virginia and Sarasota Herald-Tribune in Florida.

Economy

Stimulus package gives more back the more you spend

Neill Fronde

Published

on

PHOTO: A new stimulus package aims to get the middle class spending. (via Flickr - Marco Verch)

A new stimulus package targeting middle and high-income people aims at increasing spending by offering more e-voucher the more you spend. Ying Chai Ying Dai, which translates to “the more you spend the more you get”, will reward those who spend between 46,000 and 70,000 baht with a 7,000 baht e-voucher. This part of the government’s 225 billion baht stimulus package hopes to encourage 4 million qualifying middle- to upper-class people to spend more money by refunding 10-15% back, according to the Finance Ministry’s Fiscal Policy Office.

People wishing to participate must register and make their purchases through a government e-wallet system. The system works by refunding 10 to 15% of purchases with a maximum of 7,000 baht. So at 15%, a person who spent 46,000 baht would receive back the full 7,000. On the 10% scheme, 70,000 baht in spending would be necessary to reach 7,000 cashback. No details were available on what determines the percentage level.

An additional 2,000 baht will be available for people participating in the “Section 33 Rao Rak Kan” and “Rao Chana” scheme. The plans are expected to push 85.5 billion Baht back into the economy as recipients must spend the cash by the end of June.

The 50/50 stimulus program that has been popular with the government covering half of what people spend for half for food, drink, and other items up to 150 baht per person per day will also be expanded. That plan began on October 23, and ended at the end of 2020, covering 10 million people with each receiving 3000 baht. The second phase of the popular program added 5 million more people and raised the limit to 3,500 baht per person.

A third phase of the “Khon La Khrueng” stimulus plan is expected to begin in July with participants getting a maximum of 3,500 baht each to spend, and opening the program to 16 million new people. This massive expansion though will stipulate that anyone participating in this program cannot also participate in the Ying Chai Ying Dai scheme.

All of these cash and voucher benefits aimed at supporting vulnerable groups, along with cash handouts for people who have state welfare cards, are part of 245 billion baht the government is spending in an attempt to keep the economy from collapsing. This falls under an emergency loan decree allocating the government 1 trillion baht total to cope with Covid-19.

SOURCE: The Phuket News

 

Want more from the Thaiger family?

📱 Download our app on Android or iOS for instant updates on your mobile
📧 Subscribe to our daily email newsletter
👍 Like/Follow us on Facebook
🔔 Subscribe to or Join our YouTube channel for daily video updates

Continue Reading

Economy

Thailand increases durian exports to China by 14% this year

Avatar

Published

on

Thailand has exported 14% more durian to China in this year’s first quarter over the same period last year. The Trade Negotiations Department Director General says Thai durian auctions in the first quarter secured 186 million, making up 88% of the total amount of Thai durian exports to world markets.

Last year, Thailand exported US1.5 billion worth of durian to China, a 78% increase from 2019. China’s share accounted for 73% of total Thai durian exports to world markets. 18 countries have free trade agreements for fruit with Thailand. Thailand is actively exporting fresh fruit with its top buyers being Australia, Chile, China, Hong Kong, Indonesia, Malaysia, the Philippines, and Singapore. The most popular fruits are the national delicacy of durian, along with mango, mangosteen and longan.

Despite the increases in durian exports, farmers have been worried about Covid-19′s effect on the industry. Earlier in 2021 health authorities in China circulated a press release stating that imported cherries from Chile had been tested and found to have Covid-19 contamination. This statement prompted a huge drop in Chilean cherry prices. Thai growers are worried the same might happen to durian imports. As the seriousness of the Coronavirus in Thailand reaches new widespread levels, one instance of a durian container being linked to Covid-19 could spur a total ban on importing fruit from Thailand.

Legal Disclaimer:

MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

SOURCE: MENAFN

 

Want more from the Thaiger family?

📱 Download our app on Android or iOS for instant updates on your mobile
📧 Subscribe to our daily email newsletter
👍 Like/Follow us on Facebook
🔔 Subscribe to or Join our YouTube channel for daily video updates

Continue Reading

Economy

GDP forecast dropped to 1-2% with best, middle and worst case scenarios

Neill Fronde

Published

on

FILE PHOTO: Economic predictions continue to fall with Covid-19 spread and slow vaccination.

Mass vaccination will be the key stop the slump in economic growth after the Bank of Thailand revised their 2021 GDP forecast to between 1 – 2%. They had previously estimated a 3% growth in the gross domestic product but are now creating tiered predictions of a base level, worse situation, and a worst-case scenario, according to the Bank of Thailand’s Monetary Policy Committee.

The base GDP forecast, which you could call a best-case scenario, expects a 2% growth predicated on some rosy numbers like foreign tourism growing to 1.2 million people and unemployment staying around 2.7 million. It also operates on the assumption that Thailand reaches 100 million vaccines distributed by the end of the year which would allow herd immunity by the beginning of 2022.

The middle ground prediction is a 1.5% GDP growth if 64.6 million vaccines are administered, delaying herd immunity to the third quarter of 2022. It also allows for unemployment to grow by another 100,000 people, and tourism to reach only 1 million foreign visitors. If we don’t get this tourism growth and unemployment and underemployment expands to 2.9 million or above, and we distribute less than 64.4 million jabs, the worst-case scenario would be only a 1% GDP growth and herd immunity not being possible until the end of 2022 at the earliest.

The worst-case scenario would be a 5.7% drop in the GDP this year, a loss of 890 billion baht. The middle ground forecast would cost about 460 billion Baht, about a 3% drop in Thailand GDP.

The BOT had originally forecast stronger GDP growth but reduced from 3.2% to 3% before dropping their predictions to the 1% to 2% figure. With the devastating effect of the third wave of Covid-19 being much more far-reaching than originally expected, this new prediction was released now instead of when it was scheduled in June. They did state that government economic stimulus packages could still have a positive effect and allow the economy to grow 3 to 5.7%, assuming mass vaccination goes into effect quickly.

The tourism sector and small-to-medium-sized enterprises would be the most affected by the delays in vaccination. The Monetary Policy Committee stressed that the economy hinges on the speedy importing and administering of vaccines. Faster vaccination will prevent mutations, new strains, and new outbreaks, as well as allowing international borders to fully reopen more quickly and more successfully. They stress that government efforts to support the economy must continue as the government has recently announced they will extend cash stimulus programs and allot money to more low-income assistance.

SOURCE: Bangkok Post

 

Want more from the Thaiger family?

📱 Download our app on Android or iOS for instant updates on your mobile
📧 Subscribe to our daily email newsletter
👍 Like/Follow us on Facebook
🔔 Subscribe to or Join our YouTube channel for daily video updates

Continue Reading

Follow Thaiger by email:

Thailand2 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand4 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand4 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand4 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand4 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand4 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand4 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand4 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand4 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand4 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Trending