Corporate rate cut 'is no worry'
The chief of the Revenue Department has assured senators who worry about inadequate revenue stemming from the corporate-income-tax cut that officials would collect more from other sources to compensate.
Satit Rungkasiri, director-general of the department, said yesterday that he had given testimony to senators on Thursday. A Senate committee for vetting budget bills was worried that the government would not be able to meet its revenue target.
The government has set expenditure of Bt2.4 trillion against revenue estimated at Bt2.1 trillion for fiscal 2013.
The government has cut corporate income tax from 30 per cent to 23 per cent this year and will cut it to 20 per cent next year. Satit said this year’s reduction would result in a revenue loss of Bt150 billion.
But he said the department would step up its revenue-collection efforts by introducing new technology to reduce tax evasion. It will use computer software to track taxpayers, especially businesses. The department will also aim to collect more tax from e-commerce transactions, he said.
Satit said he agreed with the government policy of lowering the corporate tax rate to attract foreign investment. Corporate tax in Singapore is only 17 per cent, much lower than the rate in Thailand, he said.
