State revenue exceeds goal by B130bn Excise Department falls short of target

state revenue exceeds goal by b130bn  excise department falls short of target

Thai and foreign tourists walk along a sky walk in the Ratchaprasong area. Economic recovery and improving domestic consumption have been cited as reasons for the higher revenue.  Apichart Jinakul

The government's net revenue in fiscal 2022 hit 2.53 trillion baht, exceeding its target by 130 billion baht, or 5.4%, said Fiscal Policy Office (FPO) director-general Pornchai Thiraveja.

The Revenue Department collected 2.16 trillion baht in the period which ended on Sept 30, exceeding its target by 290 billion baht, or 15.5%.

The higher revenue is in line with the country’s economic recovery and improving domestic consumption, coupled with rising income from value-added tax.

However, the Excise Department missed its target. It collected 503 billion baht in revenue, falling short of its target by 93.5 billion baht, or 15.7%. This was largely the result of the government’s reduction of the diesel excise tax to alleviate the impact of soaring energy prices.

The Customs Department collected 110 billion baht, beating its target by 10.4 billion baht, or 10.5%.

State enterprises contributed revenue of 143 billion baht to government coffers, exceeding their target by 858 million baht, or 0.6%.

For fiscal 2023, the government has set a net revenue target of 2.49 trillion baht, accounting for 13.9% of GDP. It plans expenditure of 3.18 trillion baht, representing 17.7% of GDP.

The FPO projects average GDP growth this year of 3.4%, down from 3.5% in the previous forecast. It expects the economy to continue to gain support from domestic consumption and the recovering tourism sector.

The office has forecast that the country’s economy will grow faster next year with expansion of 3.8%, mainly due to more foreign tourist arrivals, despite the challenges of a possible global recession.

The FPO expects 10.2 million foreign tourist arrivals this year, up from its previous projection of eight million. It also expects 21.5 million foreign tourist arrivals next year, generating revenue of 1.04 trillion baht, more than double this year’s forecast of 490 billion baht.