Surplus revenue to help the public

If Thailand’s revenue for fiscal 2022 exceeds the government’s target, the finance ministry will spend the excess money to ease people’s living costs, the ministry’s permanent secretary Krisada Chinavicharana said.

He said a tax cut could be a method of easing people’s financial burden.

The government collected net revenue of 911 billion baht in the first five months of fiscal 2022, exceeding the target of 46 billion.

Thailand has set a spending target of 3.11 trillion baht and a revenue target of 2.4 trillion for fiscal 2022.

Mr Krisada said the cabinet was set to consider further measures on March 22 to cushion the impact of rising oil prices.

He said the government has sufficient budget to deal with the oil price situation.

Mr Krisada said it was too early to determine whether the government will launch phase 5 of the “Khon La Khrueng” co-payment grant program once the current phase 4 expires in May.

The government cannot continue stimulus programs indefinitely as the economy will soon return to normal, he said.

The co-payment scheme sees the government subsidizing 50% of food, drink and general goods purchases for participants, with the total subsidy limited to 150 baht per person per day.

Speaking at a separate event, Ekniti Nitithanprapas, director general of the Revenue Department, said he could collect 3.12 billion baht in e-services tax from foreign online platform operators based on of their total service value of 44.6 billion baht from September 1, 2021 to January. 2022.

Currently, 127 foreign online platform operators have registered to pay value added tax (VAT) in Thailand after the Electronic Services Tax Act came into force in early September last year.

The Electronic Services Tax Act requires foreign companies providing online services in Thailand to register for 7% VAT if their annual income exceeds 1.8 million baht.

From September 1, 2021 to January 2022, the department collected VAT of 1.96 billion baht from online advertising platforms based on a total service value of 28 billion baht, and VAT of 839 million baht on e-commerce platforms based on a service value of 1.98 billion baht.

The department collected VAT of 282 million baht from music, movie and game platforms based on a service value of 4.02 billion baht, and VAT of 12.8 million baht from accommodation booking and travel ticket booking platforms based on a service value of 183 million baht.

Ekniti said the e-services tax is expected to generate between 8 billion and 10 billion baht in revenue in its first year, more than the 5 billion previously forecast.

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