Thailand
Thailand: Excise Department sees year-on-year revenue dip
The Excise Department collected 198 billion baht in revenue during the first five months of fiscal 2023, down from 230 billion during the same period last year, attributed to the continued diesel excise tax cut, according to deputy director-general Kriengkrai Pattanaporn.
In March, the government resolved to extend the period for the excise tax reduction for diesel by 5 baht per litre for another two months from May 20 to mitigate the impact of rising living costs on the public.
The cut in the diesel excise tax is estimated to cost the department around 10 billion baht a month.
Mr Kriengkrai said on Friday that the top five excise tax revenue contributors for the first five months of the fiscal year are passenger vehicles, with a contribution of 44.4 billion baht, oil at 44.3 billion baht, beer at 40 billion, liquor drinks at 29 billion and tobacco at 25 billion.
He said tax collection for alcoholic beverages improved, nearing the pre-pandemic level following the country’s reopening.
The department does not expect to gain higher revenue as the third stage of the excise tax hike for sugar-sweetened beverages comes into effect on Saturday, said Mr Kriengkrai.
The objective of the tax is to improve people’s health, as beverage manufacturers have already reduced the sugar content in their products, he said.
The third phase of the tax runs from April 1 this year to March 21, 2025.
The amended excise tax structure for beverages came into force in 2017, adding a levy for sugar content on top of the excise duty slapped on beverages.
The department has yet to finish a study on an excise tax on salty, processed foods.
The government collected total net revenue of 990 billion baht during the first five months of fiscal 2023, higher than its projection by 90.5 billion or 10.1%, and year-on-year growth of 7.8%.
Source: https://www.bangkokpost.com/business/2540741/excise-department-sees-year-on-year-revenue-dip