Economic expansion continues as govt revenue increases

Despite higher oil prices, consumers apparently still spent money on durable goods last month, buying vehicles, motorcycles and electric products, as excise-tax collections for these items increased 1.3 per cent, 16.2 per cent and 10.6 per cent year on year, respectively.

Higher inflation combined with consumer spending also contributed to rising value-added tax (VAT) collections last month, which were 16 per cent higher than last year and 4.4 per cent higher than targeted.

Corporate income tax collections rose 6.1 per cent year on year but were 1.5 per cent lower than targeted.

Personal income taxes expanded 1.2 per cent but were 7.9 per cent under target, a result of a previous tax package for boosting the economy.

The specific business tax missed its target by 58.3 per cent, dropping 52.6 per cent year on year due largely to the tax package.

Rent of Bt1.57 billion was paid by PTT for using nationalised gas pipelines.     Finance Ministry spokesman Somchai Sujjapongse said yesterday  government revenue in June totalled Bt102.7 billion, 4.6 per cent over target. State revenue in the first nine months of fiscal 2008 ended June rose 9.2 per cent on year to Bt1.14 trillion, and were 3.6 per cent higher than target, he said.

The Revenue Department's tax collections rose to Bt889.5 billion, up 12.6 per cent on year. Higher profits of firms had contributed to its rise in total collections  Receipts of corporate income tax totalled Bt277.54 billion, a rise of 18.8 per cent on year and 16.9 per cent higher than projected. VAT collections expanded 13.9 per cent on year to Bt369.50 billion, and were 3.5 per cent higher than target. Receipts of personal income tax rose 7 per cent on year to Bt160.87 billion, but were 3.5 per cent lower than targeted.

The Excise Department's collections totalled Bt218.21 billion, or 0.5 per cent lower on year and 1.2 per cent lower than targeted, largely due to sluggish beer, cigarette and motorcycle production. The Excise Department collects excise taxes directly from manufacturers.The Customs Department's tariff collections rose 8.8 per cent year on year to Bt73.36 billion and 11.6 per cent higher than target. Increasing import value in both US dollars and the baht contributed to rising tariff receipts,

 The Finance Ministry was optimistic  it would meet its annual revenue target of Bt1.495 trillion by the end of September.