Tax collections drop to lowest level in Q2
The Revenue Department’s tax collection hit its lowest level in the second quarter of the 2020 calendar year, director-general Ekniti Nitithanprapas said.
Tax revenue in the second quarter fell 29 per cent year on year, after the country went into lockdown to curb the transmission of Covid-19. The Revenue Department had to introduce measures to ease taxpayers’ burden, such as the extension tax-payment deadlines and reduction in withholding tax.
However, he said, tax revenue rose 5.7 per cent in the third quarter and economic indicators have also improved. One indicator is the 2.8 per cent rise in VAT revenue in the third quarter thanks to increased domestic consumption, though VAT collected on imports has dropped 18 per cent.
He added that revenue collection will not return to the pre-crisis level at least until a vaccine is found.
The lack of a vaccine will also make it difficult for Thailand to recover as the country depends mainly on tourism revenue. The Kingdom welcomes 40 million visitors per year on average generating up to Bt2 trillion in annual income.
