Green Shoots Stew : VAT down 20 %, corporate taxes crash (-38 %) in may

Korn, alleged Finance Minister, February 1, 2009

Korn said the government would receive huge amounts of cashes from taxes in May.

ThaiCrisis, February 1, 2009.

As for the “huge amount of cash” scheduled for may… Yes, it’s corporate taxes (may and september).

But Korn is a clown because he relies on a ressources that is going down, and will continue to do so… Businesses will make less and less profits.

The report for government revenues in may has been published (source Finance Ministry).

And guess what ? Corporate taxes crashed 38,5 % year on year, from 139,5 billions THB in may 2008 to 87,7 billions !

It’s good to be good. But it was really a too easy shoot…

My point : I’m not particularly smart. It’s Korn who is totally dumb.

He’s a disgrace, nothing less. Like a child waiting for Santa Claus with a stupid smile on his face… The thai economy was already in recession, and this clown wanted us to believe that thai companies would pay a lot of taxes on profits they were not making anymore.

He should be fired.

As for the VAT, another tasty Green Shoot : -20 % at 32 billions. VAT is a good indicator of consumption… No improvement.

But wait a minute !… Abhisit promised us honey, peace and love with his “special allowance”… in april ? 2000 THB to 8 million low earners ? “Fire up the thai economy” ?

“We want to help employees with the low income,” he said. “What we do is to give cash into their hands to induce spending by injecting cash into the economy. This would help the economy in the first, second and third quarters. (Bangkok Post)

Said Abhisit, end of january... Well apparently, the policy did just what it was supposed to do : a fart. A light fart. 😉

“Help the economy in the first, second and third quarter” ? !… What a master clown !

That’s the killing point with Internet : you talk like a dumbass, and then It follows you… All your life long.

VATMAY2009

The total government net revenues in may : – 21,6 % at 217 billions THB (may and september are always high, thanks to corporate taxes).

NETGVTREVMAY2009

And the official report, with the year on year comparisons.

GOVREVREPORTMAY20092

UPDATE
You want a good laugh ? You want to understand how sensitive those issues are, and how desperate the government is ?

Just read the article published by Bangkok Post, that contains a few statements from officials. It’s surreal.

-Tax revenues for May exceeded targets for the first time this fiscal year, thanks in part to tax increases in fuel, alcohol, beer and tobacco, the Finance Ministry said yesterday.

Surreal. The total revenues are down 21 % compared to may last year, but the clowns are focusing on… taxes on alcohol, tobacco and fuel… How strange… they don’t speak about corporate taxes. 😉

-Somchai Sujjapongse, the director-general of the ministry’s Fiscal Policy Office, noted one promising sign was that value-added tax collections totalled 32 billion baht in May, significantly higher than the 20 billion baht per month collected earlier this year.

“Even though VAT was lower than the 40 billion baht in revenues collected in normal times, the increase from previous months is a good sign that consumption is picking up,” he said.

This is a gross lie. It’s amazing ! The total VAT never went down 20 billions per month in the recent months (look at my freaking chart !). And may is LOWER than april… And year on year, it’s a drop of 20 %.

So where are the “promising signs” ?

Ah yes I forgot : on the moon.

16 Responses to “Green Shoots Stew : VAT down 20 %, corporate taxes crash (-38 %) in may”


  1. 1 fall 23 June 2009 at 7:22 pm

    87,7 billions is still a huge amount of cash… technically speaking.
    And yes, he would have done better to stayed a shadow FM.

  2. 2 sammy 23 June 2009 at 11:16 pm

    The revenue department is going after foreigners for tax to help make up the shortfall, especially those who have companies that own real esate (illegally) but even legitimate businesses. I know one guy who spent two years restoring 35,000 glass negatives of historical photos of phuket going back to 1940 at his own expense. When he tried to donate them to the provincial government for a museum the revenue department assessed him 40,000 baht in income tax on the value of the negatives, which he saved from being sent to the incinerator and did not even try to sell but only give away for a museum. He refused to pay the 40000 baht at first so they put an immigration hold on him until he paid. He paid. Now he and his wife are moving abroad. In his thai wife’s words, “its not safe here anymore.” that’s in her words, not his.

    Like I said before if you have assets in this country and are a foreigner get them offshore now. If you “own” land here get it sold or legally titled soon. Dont “invest” here. Stay lean and low profile and enjoy the land of smiles.

    by the way, I live in the south and am just back from Bangkok. In the nine years I lived here I have never seen Bagnkok look so dirty and covered in graffiti. It was rare before to ever see a for sale or for rent sign anywhere now it seems as if the whole city is covered in for sale and for rent signs, in all districts. You can really see a change in Bangkok in the last year.

    I think this thing is going to get very ugly before its all finished. Not that anything is ever finished here.

  3. 3 Lothar 24 June 2009 at 4:41 pm

    I have a good idea (coming from the crazy world of german finance ministers). Why not increase the VAT to 25% in october – this will give a lot money for the brown and green uniforms.

    For everyone who does not know: the reduced 7% VAT will be raised to 10% in october.

  4. 4 ThaiCrisis 24 June 2009 at 5:15 pm

    To my knowledge the VAT increase won’t happen.. Like it didn’t happen the previous years…

    In the current situation, It would be absolutely impossible for Abhisit to do it (and assuming he wants it).

    They should do it, yes… But politically they can’t (they think they can’t). I mean look at the circus around taxes and oil products… A small increase of excise tax… compensated first by the Oil Fund… And now the Senate has voted against the project…

    They are terrified. Terrified to remove 1 THB from the system.

    Abhisit exactly in the same hot seat and trap than other countries : he wants to “stimulate” (with borrowed money, leading to budget deficit) the economy, an absurd obsession… And clearly an increase of the VAT would depress this “stimulation”.

  5. 5 CNXJeffrey 24 June 2009 at 7:51 pm

    In recent days, Mr Abhisit was interviewed on BBC while he was in Singapore, declaring Thailand was about to open up the country for foreign investments, to “free up” these age-old restrictions.
    Today’s International Herlad Tribune has an article stating “Thailand bars foreign investors from agricultural business”. The Deputy Commerce Minister has rebuffed approaches from Gulf Arab countries seeking investments in agri-business’.
    To me, ‘foreign’ capital such as this may be just what the Thai agri-business sector (and country) needs, and may have the potential to improve productivity/export performance, etc.
    The Abhisit government is such a Circus, so many Clowns, it’s hard to keep up with the show!.

  6. 6 ThaiCrisis 24 June 2009 at 7:57 pm

    Indeed. It’s hard to follow. Even for myself, as an expert anti thai bullshit, it’s difficult. I feel overwhelmed. 😉

    As for Abhisit, nothing new. The verb. This guy believe in the magic of verb.

    For Abhisit, mayor of the Potemkin Village, it’s not a problem to say “white” and to act “black”. He has 2 brains. It’s not a problem : but rather a rethorical trick.
    😉

    Abhisit is fundamentally supple. He will say what his audience wants to hear. Actually, it’s the only way for Abhisit to survive. Because, it’s obvious now, he doesn’t control nothing.

    Even if wanted (really, which I doubt) to open up the country for foreign investments, he would be unable to do so. The puppet masters are somewhere else.

    And, on some issues, they really don’t give a rat shit about what their puppet might think, or not.

  7. 7 chang dek 24 June 2009 at 10:51 pm

    TC, it’s called “a rats arse” (or ass if you’re a yank)

  8. 8 antipadshist 24 June 2009 at 11:29 pm

    read:

    Guess Who is Pushing Gold Lower?

    apparently the whole gold price supression is aimed to keep the USD afloat.

  9. 9 ThaiCrisis 25 June 2009 at 12:40 am

    Hum… but I like mine. I mean my expression. “don’t give a shit” -> “don’t give a rat shit”, lower on the scale of infamy ?
    😉

  10. 10 Lloyd 25 June 2009 at 5:37 am

    My wife arrived at Heathrow Monday evening, the plane had less than 40% capacilty yet Thai airways were trying to charge a one-way rate of 39,500 Baht for an economy seat on Friday (June 19th), luckily I used our Star Alliance points!

    One of our first discussions on our way home was about what we should do with what investments we have left in Thailand, my wifes immediate response was ‘I worry for Government want take our land because you send money to me even though we married and have other company Singapore’ (phonetic) 😉

    Thailand is in a very sad state, they just dont seem to get whats happened globally and their natural reaction seems to be blame the farang. What this will translate to in the longer term is an unknown.

  11. 11 Lothar 25 June 2009 at 1:06 pm

    39500 Wow, that expensive. Booked a flight on 31th Oct. day before yesterday and i only pay 9500 Baht for one way BKK->DUS (Duesseldorf/Germany).

    Looks like some people really likes to throw money out of the window.

    By the way seems that “The Nation” is going down
    http://thailandjumpedtheshark.blogspot.com/2009/06/nation-is-in-deep-financial-doo-doo.html

    Thats sad. Not for this elite press release printing press but because then “Not the Nation” will also perish.

  12. 12 ThaiCrisis 25 June 2009 at 1:15 pm

    9500 THB for BKK/DUS ?????? !! On which company ?

  13. 13 Lothar 25 June 2009 at 2:17 pm

    This is a special for the 30th aniversary of “Air Berlin”.

    http://www.airberlin.com/site/abvakanz_c.php?LANG=eng&HINDATUM=2009-09-20&VON=BKK&NACH=DUS#

    Look at the 102 Euro Saver Fare.

    I’m sure we see a special stimulus sale, a happy christmas opportunity or a “visit your friend – valentines special” in the next month.

    In flight Entertainment on Air Berlin is bad but i like the combination of sleeping tabletts and Whiskey anyway. 11 hours sleep on a 11 hour flight makes it much more comfortable.

  14. 14 Lloyd 25 June 2009 at 4:46 pm

    Thai Airways TG 916, BKK – LHR Monday 22nd June.

    The price for flights to London on Thai Airways ex Bangkok are noticeably higher, between 40%-80%, than flights from LHR to BKK, and its not the taxes as UK taxes are some of the highest in the world, and set to rise.

    My wife was looking at our bank statements today and for the first time ever Kasikorn Bank has started charging a 2% fee, plus a 150 Baht surcharge, on Internation transfers received, even when they are in Thai Baht, just crazy!

  15. 15 antipadshist 26 June 2009 at 2:30 am

    US approves IMF gold sales
    http://globaleconomicanalysis.blogspot.com/2009/06/us-approves-imf-gold-sales-what-does-it.html

    IMF says dollar adjustment might be needed
    http://www.forbes.com/feeds/afx/2009/06/22/afx6569595.html

    meanwhile Thailand is desperately trying to lure in tourists, even under risk of losses for Thai consulates all over the wordls ! 😀

    Free visa plan backfires on Thai honorary consulates
    http://www.phuketgazette.net/news/index.asp?id=7514


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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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