Revenue Department eyes collection gap

Revenue Department eyes collection gap

Listed firms' profits could be 40% lower

Annual tax revenue of the department was estimated at 2.085 trillion baht. Varuth Hirunyatheb
Annual tax revenue of the department was estimated at 2.085 trillion baht. Varuth Hirunyatheb

The Revenue Department is concerned that its collection of corporate income tax in the fiscal year 2021 will fall short of its target as listed companies' profits last year are expected to be 40% lower than the previous year, said the department's director-general Ekniti Nitithanprapas.

Listed companies' corporate income tax accounts for 30% of the corporate income tax the department collects from all companies. If listed companies generate less revenue, it means they will pay less income tax, which would result in a drop in the department's tax revenue this fiscal year.

The department had set a target of 2.085 trillion baht for all tax revenue this year.

Listed companies will submit corporate income tax to the department next month. This is tax derived from the revenue they incurred in the accounting period of 2020 when the Covid-19 pandemic began and whose impact has endured right up to the present.

In the fiscal year 2020 ending last September, the department was able to collect total tax revenues of 1.833 trillion baht, falling short of the target by 13.4% and 8.7% lower than over the same period in the previous fiscal year.

In the first half of the fiscal year 2021 (Oct 2020-March 2021), it was able to collect tax revenue of 735 billion baht, 9.4% lower than the target and 8.7% lower than the same period in the previous fiscal year.

Total revenue collection from Thailand's three tax collection departments, plus revenue contribution from state enterprises and state agencies in the first six months of this 2021 fiscal year stood at 1.018 trillion baht, 10.7% lower than the target and 10.8% lower than over the same period of the previous year.

Do you like the content of this article?
COMMENT (2)

Hong Kong media execs denied bail

HONG KONG: Two executives from Apple Daily were denied bail on Saturday after authorities deployed the sweeping national security law imposed by Beijing to target the pro-democracy newspaper.

14:23

Singapore sees early rush for Sinovac vaccine

SINGAPORE: Offering Sinovac Biotech Covid-19 vaccines to the public in Singapore for the first time since Friday, several private clinics reported overwhelming demand for the Chinese-made shot, despite already available rival vaccines having far higher efficacy.

14:04

Cambodia reports record 20 Covid deaths

PHNOM PENH: Cambodia reported 20 deaths from Covid-19 on Saturday, a record for a single day, as the country detected its first Delta variant cases and authorities urged people to be vigilant.

14:00