dampens revenue collection
The Finance Ministry’s revenue collection for the 2007
fiscal year is slightly higher than originally projected, as the stronger
baht and political uncertainties have affected local consumption and
investment, according to Permanent Secretary for Finance Suparut Kawatkul.
He said the government’s revenue earned for fiscal 2007 (October
2006-September 2007) totaled Bt1.45 trillion, up only Bt25.6 billion from
the projection of Bt1.42 trillion and a rise of Bt105.91 billion from the
revenue collected in the previous fiscal year.
He said taxes collected from employment totaled Bt14.57 billion, up 8 per
cent from that of the previous year, and those earned from trade increased
5.9 per cent, which remains sound.
Factors that had negative impacts on the revenue collection this year
include the stronger baht, political uncertainties, and high interest rates.
They had affected the investment and consumption, particularly of durable
The baht appreciation had reduced the baht-denomination imports by 4.2 per
cent although the import volume increased by 3.4 per cent. But it had raised
the baht-term imports by 6.3 per cent.
He said the government set a revenue target for the 2008 fiscal year of
Bt1.49 trillion, up 6.1 per cent from that of the previous year.
He believed the revenue collection for fiscal 2008 should not encounter any
problem because the country’s economy is expected to expand 5 per cent next
year with an inflation rate of 3 per cent.
In addition, various risk factors in fiscal 2007 - including political and
economic woes - had eased, which could lead to a restoration of confidence
among consumers and investors.
As of the end of fiscal 2007, the country’s fiscal coffer stood at Bt132.14
billion, up Bt2.8 billion from that of the previous year, which is
sufficient for the management of costs. TNA