Chart, VAT collections and total net revenues, for february

Here is an add-on to my previous article.

Reminder, in february :

VAT collections plunged by 25,2 % compared to february 2008 (from 40,25 billions THB to 30,09 billions).
-and total net revenues fell 21,6 % (from 116,2 billions to 91,08 billions…)

It’s obvious : the negative trend is worsening, month after month…

And why the VAT is so important ? Because it’s a large chunk of the government’s revenues… And because it’s a very good indicator of the consumption (real time too, unlike corporate taxes for instance).


Question : do you believe the trend could turn positive… in the coming months ? No, you don’t. Because you’re smart. Because you use common sense.

But of course, the clowns and the thai bureaucrats won’t agree. Thanks to “stimulus”, a few spirits and the power of the Buddha… the situation will improve. The best proof : the Bank of Thailand saw “recovery signs” ! 😉

Times are harsh but the good point is : we’re having a great laugh. Anyway.

Now, here is a chart for the the total net revenues, amount and % of change year on year.


The peaks in may and september are caused by corporate taxes.

And let’s finish with the report of the Finance Ministry. You’ll find the same data, plus the amounts for personal income tax, excises taxes, customs etc., and variations year on year.


No need to comment… Any government with real revenues 21 % lower than the budget… is in deep trouble.

Particularly when the same government uses various “stimulus ” and other stupid economic policies…

Lower revenues + higher expenses = not a comfortable position !

(report from the Ministry of Finances for february 2009)

Korn, the alleged Finance Minister, is reacting. AT LAST !

Finance Minister Korn Chatikavanich on Monday conceded his ministry needs to broaden Thailand’s tax base to increase the government’s revenue as collections have fallen much lower than earlier targeted due to the economic meltdown. […]

It is expected a conclusion on ways to collect new tax revenues will be reached soon, he said. However, he reiterated that the ministry would not levy more taxes on entrepreneurs now that the economy remains uncertain. (TNA)

Let me translate : “broaden the taxe base” means to take back tuesday what they gave on monday. 😉

Korn was a strong supporter of “stimulus ” and tax cuts (read here) ! Yes, tax cuts.

And now, he’s crying : “Help ! The Abundance Tree is dead ! We need to increase taxes.”

So Korn… You cut ? Or you increase ? Or you cut the increase ? Or you increase the cut ? You spend ? You save ? Or you borrow ?

No credibility. No sense of honor. Nothing. Nothing but emptiness.

3 Responses to “Chart, VAT collections and total net revenues, for february”

  1. 2 ThaiCrisis 11 March 2009 at 5:20 am

    Thanks for the link.

    Great report from CNN. And yes, it allows us to get out from charts and figures, from a form of virtuality… This global recession is already ugly for many people. It’s for real. It will have tremendous effects on the life of many people.

  2. 3 George P Tuckeer 11 March 2009 at 12:06 pm

    Korn’s comments to broaden the tax base could mean that expats in Thailand would be impacted. After all, at a time of mounting agitation by the masses, it may be politically expedient to hit the expats as they don’t have a vote. Sure, they can vote with their feet, but that takes time and I don’t know politicians anywhere who think beyond the next election cycle.

    Retirees would be the most vulnerable since at present they are not directly taxed at all.

    Any other soft targets for the likes of Korn?

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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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