Q1 revenue beats target, but net intake dips as Finance Ministry speeds up corporate tax refunds
Thailand’s Finance Ministry reports gross revenue collection of 767.9 billion baht in Q1 FY2026, up 5.9% year-on-year and above target by 3.4%, while net revenue missed the goal as the government accelerated corporate income tax refunds worth 38.6 billion baht to boost business liquidity.
The Finance Ministry reported that government revenue collection in the first quarter of fiscal year 2026 (October-December 2025) remained robust, reflecting positive economic signals. Total revenue reached 767.89 billion baht, exceeding the target by 25.5 billion baht or 3.4%, and rising 5.9% from the same period a year earlier.
However, while gross revenue was above target, net revenue after deductions and refunds totalled 633.03 billion baht, which was 13.05 billion baht or 2.0% below the budget target. Net revenue still increased 2.3% year-on-year.
The ministry said the net shortfall did not reflect weaker collection efficiency, but rather an active policy move to accelerate tax refunds to inject liquidity into the economy—particularly corporate income tax refunds. As a result, the Revenue Department’s tax refunds exceeded expectations by 38.59 billion baht, or 45.8% above the refund target, described as a fiscal mechanism to support business recovery.
Performance of the three main tax agencies
Among the three main tax agencies, the Excise Department was the key revenue driver in the quarter, collecting 139.9 billion baht, beating the target by 7.6% and rising 13.9% year-on-year. The ministry said this reflected stronger domestic consumption indicators, particularly in discretionary goods and energy-related categories, including oil tax, liquor tax, and vehicle tax.
The Revenue Department collected 481.93 billion baht, slightly above target by 0.6% and up 2.4% year-on-year, indicating continued expansion in the core tax base despite elevated refunds.
The Customs Department collected 28.62 billion baht, 8.0% below target, which may reflect ongoing volatility in international trade conditions.
Meanwhile, state enterprises provided additional support, remitting 64 billion baht, exceeding the target by 23.2%.
Medium-term revenue reform focus
Vinit Visessuvanapoom, Director-General of the Fiscal Policy Office (FPO) and spokesperson for the Finance Ministry, said that amid fiscal challenges and persistent deficits, the ministry has instructed agencies to accelerate revenue-structure reform under the Medium-Term Fiscal Framework (MTFF) to safeguard long-term stability.
He said a key priority under the MTFF is to closely track revenue performance—particularly efforts to “bring more people into the tax base”. Tax-collecting agencies are stepping up work to bring more of the informal economy into the formal system, reduce fiscal burdens and improve fairness in revenue collection, while strengthening resilience against future economic risks.
