Taxes : VAT up but corporate and personal income taxes down

knock knock…

The Finance Ministry has published data for february.

VAT collection was up by 23 %, compared to february 2009, at 39,05 billions THB.

Impressive ? It’s the base effect… What is interesting is that VAT was… down compared to the previous month (42,51). And to december (41,38). And to november (40,51). And to october (39,41). And to september (39,15). 😉

Seen under this angle… the message is therefore slightly different.

And what about corporate taxes ? Bingo. Down. Again. Ouch. And down on a year on year basis. -5,17 % at 14,17 billions THB.

If you believe that businesses should pay more taxes during a vivid and strong recovery, then you’re a dangerous terrorist. Or a very bad cook : you can’t obviously distinguish a Green Shoot Salad from a Green Shoot Goulash.

And, what about personal income taxes ? Recovery = more jobs = higher taxable income = higher taxes collections ? Again you’re wrong. Minus 1,76 % compared to february 2009, at 16,63 billions THB.

8 Responses to “Taxes : VAT up but corporate and personal income taxes down”

  1. 1 subu 16 March 2010 at 9:31 am

    The world’s economies are all picking up at varying rates of speed. Obviously, much of this recovery is based on the same thing that propped up world economies before the crash: imaginary wealth. As long as banks are willing to play this game of chicken with each other (especially knowing they will be bailed out) and the world’s governments continue to ignore the masses, this will continue. But a worldwide upheaval is unavoidable at this rate, and will most likely happen sooner than later. It could and probably will get pretty ugly. Such is the human social contract, as described in part by Hobbes(man is by nature an acquisitive animal and lives in fear of others and death). Many philosophers, in fact Hobbes himself, took those traits and then ran with them with all sorts of wild conclusions. But the fact remains that the above stated traits are the true drivers of all human behavior.

  2. 2 ThaiCrisis 16 March 2010 at 2:39 pm

    Very good comment Subu. Indeed, human behavior. Nothing more, nothing less.

    Old as the world itself. And never changed, based on the same principles, and leveraged with the same stimulus : pleasure, pain, greed, herd, reward, fear, love etc.

    We are so arrogant that we believe we are fundamentally different compared to our ancestors…. thousands years ago.

  3. 3 Insanity 16 March 2010 at 6:16 pm

    The West continues to hover at the point of a general breakdown-crisis of not only the entirety of their economies, but a chain-reaction collapse of every part of the economy of the world. Their financial institutions and government mouthpieces now blame the middle class and working class for the financial mess while the major financial institutions who created the financial instruments of destruction, not only got away with the biggest transfer of wealth in history, but are actually getting richer because of bailouts. The bailouts have done nothing that they were promised to do – such as increase liquidity. The banksters do however continue to maximize their own profits playing stock market casinos whilst pulling liquidity out of the system and rewarding themselves handsomely with stolen tax monies.

    Middle Class Annihilation
    The West’s fascist and unconstitutional economic policies are targeting the middle class for annihilation. Governments are gouging and exploiting the middle class until every dollar they earn is either yanked by bank bailouts, health care costs, or taxes. Their policies are responsible for the spread of misery and despair.

    Recovery – What Recovery
    As more and more data is released on this Great Recession (later to be called a Depression) it is clear that we have two tracks people are following. The first, where most travel, we have citizens dealing with the highest unemployment in generations while seeing their net worth dissolve. On the other track travel the tiny percentage of the extremely wealthy, who have seen an extraordinary jump in wealth since the depth of the crisis in March of 2009. Stock markets may be up nearly 50-70% since that low, but the vast majority of ordinary people are wondering why they don’t feel much of that rally when they open their wallets. The reality is that most are not invited to this resurgence and in fact, the destruction of the middle class is partly a reason for this stock market rally.

  4. 4 Insanity 16 March 2010 at 6:45 pm

    The question is when not if the modern capitalist system will collapse.

    Western society is finished.

    You don’t have to be a brilliant visionary to realize that in the current situation that vast suburb areas are slowly but surely turning into mass graves for the millions of former members of the middle class. Families are turning feral. Lack of resources is forcing them to live according to the Soviet model – three generations under one roof where only one works, and that person is, consequently, exasperated and embittered whilst the rest of the household gradually goes insane from idleness and boredom. The television is never turned off and the only information that seeps in comes from the lying mass media while their children join street gangs.

  5. 5 Insanity 16 March 2010 at 10:48 pm

    Off topic but worth reading as this scandal is already being hushed up!

    Lehman Brothers Scandal Rocks the Fed

    An official, 2,200-page report on the demise of Lehman has been published, showing the cosy and, probably, criminal relationship between US regulators and Wall Street banks. The activities of the New York Fed (Geithner, Bernanke), Ernst&Young and Fuld are deeply suspect. At a minimum the NY Fed (charter: promote the safety and soundness of the banking system) helped Lehman to defraud markets, investors, counterparties and the public. One of Lehman’s games, played with the Fed’s apparent knowledge, was to exchange Lehman collateral for cash just before each set of quarterly accounts (to produce lower leverage and much better capital and risk ratios) and reverse the swap soon afterwards, fraudulently classifying this as a “Permanent Sale”.

  6. 6 ThaiCrisis 16 March 2010 at 11:14 pm

    At that point, the US state apparatus doesn’t want to read. And the US people doesn’t know how to read if I may say…

    The whole story is a huge scandal. Paulson, Bernanke… they are all accomplices. But are we going to see prosecutions ? They can’t. Because It would simlply destroy the system.

    The FED covers up fraud, the banking system is a fraud, data are fraudulent…

    They will do whatever It takes to secure (?) the survival of the system. They’re okay to “give” us a clown (like Madoff)… to entertain us and the media, but they won’t go after the real culprits. Because nothing can make themselves going after…. themselves. 😉

  7. 7 Lord HaHa 17 March 2010 at 12:31 am


    Red Shirts Demand Cookies, Juice, A Place To Lie Down

    Mass donation of blood causes shift in ideology

  8. 8 whoopla 19 March 2010 at 6:19 am

    Taxes turn into bloodletting?

    Bleeding brilliant subject morphosis TC!

    At least you aren’t a coward turncoat!

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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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