About 3-4 million people are expected to be added to the personal income tax system after the full-scale implementation of national e-payments, the Revenue Department's head says.
The higher number of taxpayers will boost state coffers without raising tax rates, director-general Prasong Poontaneat said.
About 10.9 million people submit tax filings but 6.4 million are exempted because their incomes are too low. The department reported for 2014 the largest taxpayer group of 1.63 million was those earning 150,001 to 300,000 baht a year. Only 24,700 declared income of more than 4 million baht.
Mr Prasong said the e-payment system will link all trade and service transactions with the taxation system to allow the agency to estimate tax collection more accurately and reduce tax evasion.
The e-payment system has five modules: Any ID will enable anyone to transfer money and make transactions using their ID card, mobile number or email address; the expansion of electronic data capture (EDC); linking e-payments and the Revenue Department's taxation system to make tax collection more efficient; social welfare allowing the government to subsidise all low-income earners directly by using only their ID cards; and a campaign offering incentives to encourage people to use the e-payment system.
The Finance Ministry expects Any ID and EDC expansion to start in the first half of this year, with all five modules implemented by year-end. Mr Prasong said the Revenue Department will invest 1-2 billion baht to develop its computer system to prepare for linking it with the e-payment system.
E-payment via mobile phone will play greater role towards the government's promoted e-payment scheme. PATTARACHAI PREECHAPANICH
The first phase will take six months to connect the system with state agencies to alert the department when individuals make a transaction. The second, to enlarge the information-receiving terminal, will take 1-2 years.
The Revenue Department expects its tax collection will fall short of target by 100 billion baht this fiscal year due largely to declines in value-added tax (VAT). For the first two months of fiscal 2016, starting from Oct 1 last year, tax collection was 7-8 billion baht below target, with about 2 billion in foregone revenue resulting from the decline in VAT on petrol purchases.
"Several tax measures will hurt tax collection but we consider they are worthwhile as they can help develop the country in the long run," Mr Prasong said. These include the shopping tax deduction over the recent festive season and cuts in tax for small and medium-sized enterprises.
Fiscal Policy Office director-general Krisada Chinavicharana said the national e-payment system would add 150 billion baht a year to the government's coffers, while the implementation of land and buildings tax could offset missing revenue from tax incentives.