Finance Ministry reports dip in 2024 revenue due to stronger baht

The Finance Ministry believes it has missed its fiscal 2024 revenue target by some 5 billion baht mainly due to a stronger baht during the last two weeks of the year.

Lawan Saengsanit, Finance Ministry’s permanent secretary, told reporters that initial figures show that tax collection would be up to 5 billion baht below the target, even though all tax collection agencies have performed their duties fully.

He attributed this failure to meet the target on a stronger baht during the last two weeks of fiscal 2024 (October 2023 to September 30, 2024). However, he did not disclose the official tax collection figures while talking to the press on Tuesday.

He explained that the stronger currency affected the value-added tax collected on imported goods, adding that the currency exchange rate was a factor that went beyond the ministry’s control.

He said a stronger baht meant the collected VAT on imported goods was low. However, he added, the failure to meet the tax target does not affect the budget balance because government agencies did not meet their target of budget disbursements either.

Meanwhile, a source from the Excise Department said on Tuesday that the department had missed its tax revenue target by 74.32 billion baht for fiscal 2024.

The source said the department expected to collect 598 billion baht worth of taxes in fiscal 2024 but ended up collecting 523.68 billion baht.

The source said the excise tax collected on vehicles and cigarettes was lower than last year due to the economic situation and due to the increase of excise on cigarettes, prompting smokers to smuggle or buy cigarettes illegally.

Though the department failed to meet its target, excise collections in most categories were higher compared to last year.
According to the source, excise tax collected by the department in fiscal 2024 included:

• Oil and oil product: 209.83 billion baht (up 63.41%)
• Vehicles: 67.36 billion baht (down 34.25%)
• Beer: 90.01 billion baht (up 4.09%)
• Liquor: 64.60 billion baht (up 0.68%)
• Cigarettes: 51.247 billion baht (down 11.16%)
• Non-alcoholic beverages: 29.10 billion baht (up 7.97%)
• Motorcycles: 4.3 billion baht (down 7.97%)