Bangkok: The Treasury Department has acknowledged that tax revenue for the fiscal year fell short of expectations, citing the strong baht and a reduction in excise taxes as primary factors.

According to Thai News Agency, Mr. Chulaphan Amornvivat, Deputy Minister of Finance, revealed that tax revenue by the end of fiscal year 67 was 4-5 billion baht below the target, with the net income for the period from October 66 to August 67 totaling 2.45 trillion baht. He noted that the shortfall was anticipated mid-fiscal year due to a reduction in excise tax aimed at alleviating the burden of high diesel prices on the public. This reduction led to a 28 billion baht shortfall in excise tax revenue. Additionally, the appreciation of the baht negatively impacted value-added tax from imports, further contributing to the revenue shortfall.

Mr. Amornvivat assured that the missed target would not disrupt budget management processes, as cash flow disbursement could still proceed normally. He mentioned that the pressure from
the baht had somewhat eased following a 0.25 percent reduction in the policy interest rate by the Monetary Policy Committee (MPC). He emphasized the importance of monitoring future interest rate decisions by the MPC.

Mr. Laworn Saengsanit, Permanent Secretary of the Ministry of Finance, also confirmed the 4-5 billion baht shortfall in tax revenue at the end of fiscal year 67. However, he stated that this did not impact the fiscal balance, as annual budget disbursements are typically not fully utilized, ensuring that current cash flow remains unaffected.

Source: Thai News Agency