Excise revenue tops January target on election hope

The Excise Department’s revenue collection surpassed the target for the first time this fiscal year in January, reaping a windfall as the upcoming general election boosted consumption demand.

Demand for drinks and tobacco is expected to keep rising in February and March as the election and Songkran draw nearer, said director-general Patchara Anuntasilpa.

Excise revenue exceeded the target by 78 million baht or 0.1% last month, Mr Patchara said, as tax collected rose by 4% year-on-year for liquor, 9% for beer, 7% for tobacco and 18% for other drinks.

A 14% year-on-year increase in excise tax on cars in January also gave a boost to the department’s revenue collection, he said.

Although auto lenders have tightened lending, new car models and improving consumer confidence have spurred buyer interest.

For the four months to January, the Excise Department amassed 180 billion baht in tax revenue, falling short of target by 11 billion baht or 5% on lowerthan-expected revenue collection in the first three months.

Despite the missed target, revenue in the period was up 14 billion baht or 8.5% year-on-year.

The Finance Ministry recently revised down the Excise Department’s revenue target for fiscal 2019 to 584 billion baht. Even so, the department has kept the previous target of 622 billion baht as an internal goal for excise officials to meet.

Excise revenue in the early fiscal year always misses the target because some taxes are collected during the final months of the previous year, Mr Patchara said.

For fiscal 2020, the Excise Department aims to collect 626 billion baht, up 42 billion from the revised target for fiscal 2019.

The target for next fiscal year is based on the assumption that there is no hike in any excise tax.