No crisis at Revenue Department : 10 % more staff

Gimme more… more stimulus… more boost… more non sense.

The Revenue Department has announced plans to recruit 2,000 staff to collect more taxes.

Deputy Finance Minister Pradit Pataraprasit expressed confidence the government’s economic-stimulus package and rising prices for farm products would generate more taxes for government coffers.

If approved, the new staff will add to the 20,000 members of the department’s staff, 18,000 of which are state officials and the rest government employees. (Nation)

That’s a 10 % increase !

So to summarize : the thai government recruits more staff for the Revenue Department… while it cuts taxes… that the same Revenue Department has to collect !

It makes perfectly sense. πŸ˜‰

It’s the Thai Circus.

Look at the budget for civil servants wages… it’s already up (chart here).

4 Responses to “No crisis at Revenue Department : 10 % more staff”

  1. 1 Bangkok Pundit 23 April 2008 at 11:09 am

    But aren’t government revenues from tax revenue going up each year? From business people I talk to in Thailand, it is more difficult to evade all your taxes now that what it was 10 years ago.

    Ultimately, it is difficult to say it is a good or bad measure without looking at the cost vs the expected revenue increase – no doubt inflated, but we can look at percentages increases in a few years.

  2. 2 thaicrisis 23 April 2008 at 3:16 pm

    Sure, on theory yes. But I just wanted to highlight the “time collision” between the 2 announcements.

    More seriously, this hiring plan for the Revenue Department is part of the planned increase of public spendings.

    The government is running after easy and fast political gains (there will be obviously a general elections… soon).

    Therefore they want to “boost” and “stimulate the economy” (thanks to many “stimulus packages”). It’s like a very weird obsession.

    As I wrote many times here… if we look a bit further… we can see that it’s only wind : short term decisions, short term effects, subsidies, and easy lendings.

    So to summarize : if the idea is to increase and improve taxes collection on the long term, fair enough. But I’m afraid that it could be just a booster, like hiring 2 000 more police officers, or whatever else… what I call the “dildo economy”. πŸ˜‰

  3. 3 Banker 23 April 2008 at 10:50 pm

    What is your view of the currency for the next 1-3 month time period.


  4. 4 thaicrisis 24 April 2008 at 3:17 am

    -> Banker.

    Tough question of course.

    I think that we are in the eye of the cyclone.

    Exchange rate USD/THB seems stable since march (31,30)… but it could change quickly.

    The key to answer I think is not in the US (albeit…) but rather in China. It looks that China is less willing now to see the RMB going up again versus the Dollar.

    My point : I think Thailand locks the situation of USD/THB on the USD/RMB evolution.

    On the other hand, we can’t deny that political risks are high in Thailand. That could weaken the THB. Suddendly.

    Plus the fact that the USD could fall again. Suddently too.

    So to summarize : I’ve got not idea ! πŸ˜‰ Too many factors.

    However, I do think that exchange rate EURO/THB will continue to go up (it’s the thai interest to compensate what they loose with exports in USD, with exports in Euro zone, therefore they will let the Euro going up versus THB without any remorse, it means without any intervention).

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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