The Finance Ministry has established a committee to reform the tax structure and the state welfare system, aiming to achieve fiscal sustainability, according to Deputy Finance Minister Julapun Amornvivat.
He said tax reform cannot be considered separately from improvements to the state welfare system, as they are interconnected with state welfare programmes funded by government revenue.
The ministry is studying negative income tax, which requires everyone in the country, regardless of income level, to file personal income tax.
If an individual's income falls below a specified threshold, the state provides a portion of financial support.
According to Mr Julapun, in the initial phase of implementing negative income tax, it would be impossible to integrate all state welfare programmes into this system because of its complexity.
Therefore, the ministry plans to phase in the new system gradually, starting with certain welfare groups, such as state welfare card holders.
A ministry source who requested anonymity said the Fiscal Policy Office (FPO) tried to propose measures to mitigate fiscal risks, including prioritising efforts to speed up reducing the fiscal deficit to a normal level, not exceeding 3% of GDP, which would help to restore fiscal space to address any future crises.
Debt issuance should focus on projects that lead to sustainable economic and social development, according to the FPO.
The ministry also intends to promote the implementation of a tax structure and government revenue reform that can enhance debt repayment capacity and address declining government revenues due to changes in the economic structure and consumer behaviour, said Mr Julapun.
The ministry wants to review various exemption and reduction measures, including measures to reduce energy costs, ensuring they are limited to what is necessary and beneficial to the economy and society, he said.
The ministry is committed to reducing unnecessary expenses through public sector workforce restructuring to make it more appropriate and efficient, said Mr Julapun.
He said the public welfare system will be revamped by integrating data and the operations of related agencies to enable the government to implement a "conditional transfer" welfare system, with projects allocated according to Section 28 of the State Financial and Fiscal Discipline Act as necessary.
Priority should be given to projects carried out annually and planned in advance, requesting budget allocations through the annual expenditure budget process, said Mr Julapun.