Six-month govt revenue target missed by 'insignificant' 0.1%, FPO says

FPO director-general Krisada Chinavicharana said that from October 2014 to March 2015, the government recorded total revenue of Bt973 billion, about Bt948 million or 0.1 per cent lower than the target.
Revenue is estimated to be Bt2.325 trillion for fiscal 2015, while government expenditure is set at Bt2.575 trillion. The budget deficit, thus, is set at Bt250 billion.
In March, the government registered net revenue of Bt157.3 billion, about Bt10.7 billion higher than the target.
“Recent drops in global crude-oil prices were the main reason for lower-than-targeted government revenue. There were also reductions of taxes for imported raw materials and machinery,” Krisada said.

VAT on oil import
In the first six months of this fiscal year, value-added tax on imported oil was Bt20 billion lower than the target.
After the Customs Department’s reduction of tax on imported raw materials and machinery, about Bt5 billion of its revenue is expected to be lost. However, in the first six months, only Bt2 billion of its revenue was lost, and that was lower than expected.
The Excise Department, in the first six months, collected Bt223 billion, about Bt11 billion or 5.2 per cent higher than estimated. The Revenue Department brought in Bt709 billion, 5.5 per cent lower than expected. The Customs Department recorded Bt589 billion in revenue, 4.1 per cent lower than targeted. In total, the three departments recorded Bt30 billion less than expected.
“However, the government earned Bt20 billion more than expected from state enterprises and other state agencies. Thus the government’s revenue was only slightly lower than targeted,” Krisada said.
He said the overall economic situation, particularly exports, should be examined before assessing total revenue for the whole of fiscal year 2015, which ends in September.