Thai govt revenue in first seven months of fiscal 2009 down 16.67% from projection

BANGKOK, May 16 (TNA) — Government revenue in the first seven months of fiscal 2009 – from last October 1 to April 30, 2009 – fell 16.67 per cent below projections, a senior Thai Finance Ministry official said.

Somchai Sujjapongse, Director-General of the Fiscal Policy Office said government revenue during the period stood at Bt644.651 billion, down from Bt773.584 billion projected earlier.

The sharp decrease in government revenues from the target number was attributed to falling tax collections, a drop in budgetted revenues from government-run state enterprises and rebates and allowances instituted by the Revenue Department during the first quarter of fiscal 2009, said Mr. Somchai.

Value-added tax (VAT) and personal income tax collections during the period also slipped 18.6 per cent and 7.6 per cent respectively due to the sluggish economy in the country and tax reductions offered by the government, he said.

Although the government earlier this month increased excise tax on alcohol drinks which could generate higher income, the Finance Ministry forecast that government revenue for the entire fiscal 2009 would definitely retreat from an earlier projection of about Bt1.6 trillion, Mr. Somchai said. (TNA)