Taxation till B160bn short

Taxation till B160bn short

The Finance Ministry forecasts revenue collection will fall 160 billion baht short of its target this fiscal year.

Rungson: Treasury reserves not affected

Finance permanent secretary Rungson Sriworasat said of the total, the Revenue Department is expected to miss its target by 100 billion baht, the Customs Department by 40 billion and the Excise Department by 20 billion.

The budget for fiscal 2014 ending Sept 30 stands at 2.525 trillion baht, with revenue collection of 2.275 trillion, leaving a deficit of 250 billion.

Revenue collection for the first nine months was 6.6% below target at 1.55 trillion baht.

The lower revenue collection was attributed to an overestimated excise tax on diesel based on the assumption the tax would be raised amid a rebounding economy.

The shortfall is not expected to affect spending as Treasury reserves total 380 billion baht, he said.

Separately, he said the ministry already submitted a tax reform proposal to the National Council for Peace and Order for deliberation.

The proposed tax reform will focus on tax incentives for small and medium-sized enterprises (SMEs) to lower their costs and sharpen their competitiveness. 

After the Yingluck Shinawatra government cut corporate income tax to 20% starting last year, the tax spread between SMEs and companies narrowed.

Since 2008, SMEs with registered capital of less than 5 million baht were levied 15% for revenue over 150,000 baht but not exceeding 1 million and 25% for revenue over 1 million but not exceeding 3 million.

Revenue below 150,000 baht is tax-exempt.

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