November tax collection targets missed by B7bn

November tax collection targets missed by B7bn

Tax revenue collection swung back to a shortfall of 7 billion baht last month, emphasising the fragile condition of the country's economic recovery.

All three tax-collecting agencies failed to achieve their tax revenue collection targets for the second month of fiscal 2015, which began on Oct 1, said Amnuay Preemanawong, deputy finance permanent secretary and head of the revenue group.

He said the Revenue Department missed its target by 4 billion baht, the Excise Department by 2 billion and the Customs Department by 1 billion. Lower corporate income tax collection was blamed for the Revenue Department's shortfall.

"It was not easy for tax collections to reach the target amid the slow economic conditions," Mr Amnuay said. "Also, tax collection growth for this fiscal year was set at 14%, double last fiscal year's target."

Sinking farm product prices, particularly for rice and rubber, were also blamed for November's collection shortfall.

Tax revenue, a barometer of economic conditions, exceeded October targets by 5.5% due to higher revenue contribution from state enterprises, while the three tax collecting departments together gathered 1.32 billion baht more than target.

In fiscal 2014, the government missed its target by 8.8% or 201 billion baht due to sluggish economic growth and exports.

Separately, Finance Minister Sommai Phasee said he would give each director-general six months to crack down on graft.

"I'm lucky that I'm not a politician, that I worked in the private sector after stepping down as deputy finance minister in the Surayud Chulanont government. That's how I've learned there are so many problems with corruption, particularly among Customs Department officials," he said.

He said the problems had not been completely eradicated despite department director-general Somchai Sujjapongse's extensive efforts to address the problem.

The latest report on corruption involves Finance Ministry officials asking 2 million baht if companies want to accelerate value-added tax refunds for exported items.

"I don't care how much support any director-general has. I'll quit if anyone in the cabinet tries to block a proposed reshuffle from me, as the Finance Ministry cannot work in a transparent manner if those holding the director-general title are corrupt," Mr Sommai said.

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