Bangkok administration targets B80bn tax revenues

The Bangkok Metropolitan Administration (BMA) will seek to amend the Bangkok Metropolitan Administration Act of 1985 to enable it to generate more income to meet its target of 80 billion baht in tax revenues in the current fiscal year, governor Chadchart Sittipunt said on Tuesday.

Speaking after chairing a meeting of City administrators, he said the BMA wanted to collect its own taxes on tobacco and hotel stay sales, but is prevented by law.

The BMA Act of 1985 must be amended to empower the administration to collect such revenues, the governor said, and a bill to this end would be drafted and forwarded to the Interior Ministry and the cabinet for consideration.

The procedures would be complicated and time-consuming as other related laws must also be taken up for consideration, Mr Chadchart said.

Another way to increase tax revenues is for the BMA to improve its database on local taxes, which include taxes on land, buildings and commercial signs, he said. The tax collection system and the database must be constantly updated.

The BMA is currently empowered to collect taxes on land and buildings, commercial signs and petrol stations. Together with fines and fees from issuing various permits, the governor said the sums amount to 10 - 20 billion baht per year. Additional revenues come from value-added tax, excise tax and other taxes collected for the BMA by other government agencies.

Since the BMA had set a target to collect 80 billion baht this fiscal year, it was also looking forward to collecting taxes from businesses that damage the environment on the "polluter pay principle".  

Mr Chadchart said the BMA was also considering collecting car parking fees as another way to increase its income. The Traffic and Transport Department had been assigned to conduct a study on the feasibilty of incorporating this in the draft bill seeking to amend the BMA Act, he added.