Thai government announces total revenue of THB2.69 trillion for first 8 months of fiscal year
As of May 3 2016, the Government Financial Management Information System had collected THB2.69 million in revenue from state agencies as well as contributions from state-owned enterprises for the first 8 months fiscal period ending in 2016.
In addition overall government spending was on track according the director-general of the Comptroller-General’s Department, Manas Jamveha who said that 65.77% of the total THB2.72 trillion had been spent in the first 8 months.
It perhaps comes as little surprise that the greatest proportion of the revenue came from VAT amounting to THB50.81 billion which equates to 17.36% of all the tax received. Corporate income tax and personal income tax made up 10.4% and 8.43% respectively. The tax generated from oil and gas products made up 4.44% of the overall revenue.
It has been predicted that tax revenue generated will increase again in the period of May compared with the previous year with figures suggesting that there has been a slight improvement in the economy over the last 12 months. State spending is also expected to increase to help boost the economy in conjunction with the government’s economic stimulus measures. These measures are intended to boost living standards throughout the country and to expand the economy.
The long term benefits from a social perspective are quite apparent although the increased tax revenue is not welcomed by all with some in business claiming that taxes are too high and stunting economic growth. The One Book Accounting System that was brought in earlier this year is viewed as a tactic to reduce tax evasion and has once again received a mixed welcome.
As the government pushes forward with their attempts to increase transparency and reduce corruption there will no doubt be further conflicts and more questions asked. The government is looking to close all loopholes relating to tax so it is likely that tax revenue will increase again during the final 4 months of the fiscal year. This when coupled with the growing confidence in the economy suggests that budgets may again increase in the 2017 fiscal year.