A sluggish economy coupled with heavy government spending particularly on social welfare, may force the Finance Ministry to raise taxes, permanent secretary for Finance Ministry Suparat Kawatkul said.
Tax revenues collected by the government during the first half of fiscal 2009 – October 1, 2008 to March 31, 2009 – declined significantly, Mr. Suparat warned.
During the period, excise tax collection fell more than 20 per cent year-on-year while revenue tax collection was down around 9-10 per cent.
Compounding this situation, corporate tax revenues are expected to fall drastically this August in line with the economic downturn, he said.
Already off by about 30 per cent year-on-year – almost equivalent to import tariffs collected by the Customs Department – value-added tax revenues are projected to decline further from next February, a decline Mr. Suparat attributed to the poor economy, slow spending by Thais and the drop in tourists numbers. This situation would improve significantly if international trade and tourism recovered, he said.
Mr. Suparat predicted if tax revenues fail to support government expenses and public debt then the government may have to increase tax levels across the board to 20 per cent of gross domestic product (GDP) from about 15-16 per cent of GDP now. (TNA)
Well done guys ! The government eventually understands that something is seriously wrong… Abhisit thought that he could have a blank check and could multiply the gifts, the silly subsidsies and other toys and tax cuts, for free or financed by debts, without any consequences (read here ).
Welcome back on earth mister Abhisit, where laws of physics (and finances) apply… ;-)
The problem is obvious since several months… A quick look on taxes collections (my chart here), a little bit of common sense… it was enough to understand that Abhisit was running toward a wall… It was enough to understand that the hope of the Finance Minister to rely on corporate taxes in may and august was totally childish.
Korn said the government would receive huge amounts of cash from taxes in May.
When did he say that ? February 1… ;-)
Korn is nothing but a clown.