State firms told to fill Govt coffers

Deputy Finance Minister Pruttichai Damrongrat yesterday said government revenue would miss its target of Bt1.58 trillion by 10-15 per cent, due to the sharp economic downturn.

He said the ministry would step up tax scrutiny in order to make sure taxpayers were complying fully with the law.

Pruttichai next month will also receive a study on excise tax restructuring.

"There are several items being targeted for tax hikes, including tea, coffee and soft drinks," he said.

State Enterprise Policy Office director-general Areepong Bhoocha-oom said some state enterprises had been asked to transfer more money to the ministry, especially ones that could not implement their investment plans.

For example, the Thailand Tobacco Monopoly could do this, because it had a lot of cash on hand. It plans to build a Bt16-billion factory, but that has long been delayed.

The latest revision of government revenue estimates money transfers from state enterprises at Bt86 billion, or Bt7 billion short of what was targeted.

Regarding their capital expenditures, state enterprises plan to invest a combined Bt290 billion this year, but Pruttichai said actual spending was proceeding slowly.

He said government revenue for fiscal 2009 would be off by Bt230 billion, or about 15 per cent. Government expenditures are set at Bt1.83 trillion, or 17.9 per cent of gross domestic product (GDP), up Bt175 billion from fiscal 2008, while revenue is expected to be Bt1.58 trillion, representing a deficit of Bt250 billion, or 2.5 per cent of GDP.

Meanwhile, Comptroller-Gen-eral's Department director-general Piyabhan Nimman-haemin said the government might not have to request

Bt17 billion worth of unused Government Lottery Office (GLO) funds directly if the GLO would pay its owed taxes.

Earlier, the government planned to introduce a bill in Parliament giving it the right to obtain funds from the GLO. However, Piyabhan said if the GLO paid its taxes, there would be no need to submit such a bill.

GLO director-general Wanchai Surakul said the unpaid tax for the previous two- and three-digit lotteries amounted to a combined Bt21

billion.