Tax revenue may miss target as VAT collection lags
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The Revenue Department is worried that tax collection this year might be lower than the target, as VAT from imports has been Bt10 billion less than expected.
Satit Rangkasiri, director-general of the Revenue Department, said it was difficult to estimate if the total tax collection this year would meet or exceed the target of Bt177 trillion.
The department is still closely monitoring VAT collection from imports this year, as it has been far below the target, and that could affect the department’s total revenue collection.
He added that so far the department had achieved several tax collection targets, except from VAT on imports. The department expects to collect Bt700 billion in total VAT, which would be Bt10 billion lower than the target.
Imports have expanded only 2.4 per cent so far compared to the same period last year, when they expanded 8.8 per cent VAT on imports account for 60 per cent of total VAT revenue.
He said the collection of domestic VAT revenue was still at a high level, suggesting healthy domestic consumption.
Declining imports this year may be the result of the recent baht appreciation, he said, and that the country had already imported massive amounts of machinery for production after the 2011 floods.
But he was satisfied with the collection of personal income tax, which has already reached Bt275 billion this year, 12.7 per cent or Bt8 billion over the target. Collection of corporate income tax has reached Bt640 billion, lower than the target by 8 per cent but still 8.3 per cent higher than last year. This was a good result, he said, considering that the country has cut corporate income tax to 20 per cent at present.
