Early tax collections signal rosy fiscal year

According to Deputy Finance Minister Pradit Pataraprasit, the Customs Department last month collected Bt7.81 billion, exceeding the target by 21 per cent, he said. However, it was down 10 per cent year on year.

Pradit said Customs collected valued-added tax (VAT) of Bt16.94 billion, up 13.5 per cent year on year, thanks to a recovery in imports.

Figures showing greater imports of machinery and raw materials, such as steel and precious stones, suggested private investment might be on the upswing.

The Revenue Department's tax receipts last month exceeded the target of Bt72.21 billion by 10.7 per cent. The department collected Bt14.72 billion in personal income tax, 5.5 per cent above the target, and Bt16 billion in corporate income tax, surpassing the target by 10.6 per cent.

VAT collection reached Bt39.4 billion, 13.5 per cent above the target, said Pradit. Consumer confidence in the economic recovery contributed to that rise.

"The two departments performed satisfactorily. Imports and domestic spending showed improvement, a positive signal to economic recovery and in line with the public and private sectors' forecasts," Pradit said.

"Yet, we're still concerned about external factors, particularly unemployment in the US, which remains unclear."

As such, despite better signs, the tax-collecting units will not raise their revenue projections, as they have taken into account all positive factors and prove to be challenging enough to the units. The Revenue Department has targeted raising Bt1.097 trillion in this fiscal year, or 75 per cent of the government's targeted revenue.

The Excise Department's target is Bt291 billion, while the Customs Department's is Bt73.8 billion.

The Finance Ministry expects increasingly lower tariff collections, due to trade-liberalisation agreements resulting in rates being reduced or eliminated.

Meanwhile, Finance Minister Korn Chatikavanij yesterday reached an agreement with Interior Minister Chaovarat Chanweerakul for help in smoothing the government's campaign to ease the debt burden of the poor.

Korn said as debt restructuring required mediation, the Interior Ministry's assistance would support the process.

Prime Minister Abhisit Vejjajiva will officially kick off a debt-restructuring scheme on November 19, and the poor will be able to register for it next month.

Korn said up to 1 million people could enrol in the programme and that 100,000 debtors could transfer their debts from unorganised lenders to state-owned banks. Each person will be allowed to restructure maximum debt of Bt200,000.

Interior official Wongsak Sawaspanich said the ministry could call on a network of 2,000 administrative bodies to help the programme.

"Debt mediation should cost Bt27 million," he said, adding that the indebted poor numbered 1.7 million people in 2006.