B600bn rev­enue tar­get within reach



Ex­cise Depart­ment has ex­pressed con­fi­dence that its rev­enue tar­get of 600 bil­lion baht for this fis­cal year is reach­able based on the coun­try’s eco­nomic mo­men­tum.

Brighter eco­nomic growth prospects for next year will im­prove do­mes­tic con­sump­tion, said Krisada Chi­navicha­rana, di­rec­tor-gen­eral of the depart­ment. The out­put of ev­ery car­maker is ex­pand­ing, he said.

Thai eco­nomic growth will con­tinue and ac­cel­er­ate to 4% next year, Mr Krisada said.

The Bank of Thai­land’s Mon­e­tary Pol­icy Com­mit­tee re­cently raised its GDP growth fore­casts for this year and 2018 to 3.8% from the 3.5% and 3.7% pre­dicted in July, based on stronger-than-ex­pected ex­port fig­ures.

The depart­ment’s rev­enue tar­get of 600 bil­lion baht is 7% higher than the fis­cal 2017 rev­enue col­lec­tion of 560 bil­lion baht, which ex­ceeded the tar­get by 12 bil­lion or 2%.

Re­gard­ing the depart­ment’s tax rev­enue col­lec­tion af­ter the new ex­cise law is im­ple­mented, Mr Krisada said rev­enue fell to 11 bil­lion baht dur­ing the first 10 days of Oc­to­ber from 12 bil­lion in the same pe­riod last year, as oper­a­tors ad­justed to the new tax struc­ture.

The drop in rev­enue is ex­pected to be short-lived and tax rev­enues are ex­pected to nor­malise soon, said Mr Krisada, who took of­fice on Oct 1.

Un­der the new ex­cise law, the rec­om­mended re­tail price re­places the ex­ist­ing ex-fac­tory price and cost, in­sur­ance and freight (CIF) val­ues as a base for ex­cise tax cal­cu­la­tion. The change was aimed at cre­at­ing a fairer sys­tem for man­u­fac­tur­ers and im­porters af­ter some busi­nesses were found to have ex­ploited the sys­tem to un­der­state their tax bills.

Sug­ary drinks, cig­a­rettes and most al­co­holic drinks have higher ex­cise taxes un­der the new law, which went into ef­fect on Sept 16.

As for so-called sin taxes, which are ap­plied to al­co­holic drinks and cig­a­rettes, the new ex­cise rate takes into ac­count both value and quan­tity, as op­posed to the pre­vi­ous leg­is­la­tion that tar­geted ei­ther value or quan­tity, de­pend­ing on which was higher.

With the new tax rates on liquor, 45% is based on the value and 55% on the al­co­hol con­tent in com­pli­ance with calls from pub­lic health groups.

The tax on cig­a­rettes is also based on both value and quan­tity. Cig­a­rette packs priced 60 baht or lower face a 20% tax and those above 60 baht get a levy of 40%.

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