Finance Ministry targets revenue boost through major tax reform

The Finance Ministry is considering a comprehensive tax system overhaul with the objective of increasing Thailand’s revenue-to-GDP ratio to 18%, which could generate an additional 800 billion baht annually, according to the ministry’s permanent secretary.

Tax Reform Plan to Be Submitted in Fiscal 2025

Lavaron Sangsnit, Permanent Secretary of the Finance Ministry, stated that a major tax reform plan is currently being drafted and will be submitted to Deputy Prime Minister and Finance Minister Pichai Chunhavajira within fiscal year 2025.

The reform will encompass tax collection improvements across three key agencies: the Revenue Department, the Excise Department, and the Customs Department.

Targeting a Shift from 13% to 18% of GDP

Currently, government tax revenue from income tax, excise tax, and import duties stands at 12–13% of GDP. Lavaron noted that raising this figure to 18% would significantly enhance the country’s fiscal sustainability.

“If we increase tax revenue by 5%, we will generate an additional 800 billion baht per year,” he said. “This would enable the government to plan for a balanced budget instead of running a deficit. This is a challenge we must urgently address.”

First Half of Fiscal 2025 Sees Positive Revenue Trends

Pornchai Thiraveja, Director-General of the Fiscal Policy Office, reported that during the first half of fiscal 2025 (October 2024 to March 2025), the Finance Ministry collected 1.19 trillion baht in revenue.

This amount was 1.807 billion baht (0.2%) higher than the official target, and 26.503 billion baht (2.3%) above the same period last year.

VAT and State Enterprises Drive Revenue Growth

Pornchai highlighted that the majority of revenue came from Value-Added Tax (VAT) on domestic consumption and earnings from state enterprises.

However, excise tax on vehicles fell short of expectations due to government incentives aimed at promoting battery electric vehicle (BEV) sales.

Revenue Performance by Department

For the first half of fiscal 2025, the revenue collected by the three main departments was as follows:

• Revenue Department: 966.2 billion baht — an increase of 36.212 billion baht year-on-year, and 10.157 billion baht above target.
• Excise Department: 264.971 billion baht — a decrease of 4.16 billion baht from the previous year, and 21.321 billion baht below target.
• Customs Department: 57.365 billion baht — a decline of 2.109 billion baht from the previous year, and 4.235 billion baht under target.

Revenue Department Exceeds April Collection Targets

Pinsai Suraswadi, Director-General of the Revenue Department, announced that the department collected 171.921 billion baht in April 2025 — an increase of 11.052 billion baht from April 2024, and 7.732 billion baht above target.

Over the first seven months of fiscal 2025, the Revenue Department accumulated 1.13 trillion baht, outperforming the previous year by 47.325 billion baht and exceeding the target by 17.95 billion baht.