Revenue Dept eyes new income sources amid economic challenges
Department ramps up effort to improve tax compliance among entrepreneurs amid fiscal challenges, aiming to meet yearend goals
The Revenue Department is making a concerted effort to bring more entrepreneurs into the tax payment system in a bid to boost revenue in the 2024 fiscal year.
Kulaya Tantitemit, the department’s director-general, said on Monday that notices had been sent to some 100,000 entrepreneurs with irregular financial activities, but only half have responded.
The department targeted entrepreneurs who generate between 2 million and 3 million baht in revenue annually, but have failed to file tax returns or register for value-added tax (VAT), Kulaya said.
In comparison, she said, entrepreneurs who comply with tax regulations have already contributed an additional 2 billion baht to the government coffers.
Despite surpassing its target of 2.27 trillion baht for the first nine months of fiscal 2024 (October 2023-June 2024) by 0.5%, Kulaya reckons there are still many challenges ahead.
“The department is putting all its efforts into generating more revenue in the remaining months of this fiscal year,” she said, underscoring a slowdown in certain sectors such as property.
However, the recent Cabinet decision to potentially boost property sales by increasing foreign ownership of condos and extending property leaseholds from 50 to 99 years is seen as a positive step. As for the impending 7% VAT on imported goods costing less than 1,500 baht, she said that was aimed at levelling the playing field between Thai and foreign businesses.
Kulaya believes this move could generate 1.5 billion baht in revenue annually, adding that the implementation is slated for next year.
Plans are also underway to boost the collection of personal income tax from people generating income overseas, further bolstering government revenue streams, she added.
