The Ministry of Finance has partnered with the World Bank and the Asian Development Bank (AfDB) to conduct a study on how the government can ensure sustainable income growth through fiscal restructuring, said Kulaya Tantitemit, director general of the ministry’s budget policy office.
Ms Kulaya said the new tax structure would ensure fair treatment, keep pace with the economic environment and be in line with international best practices.
The Covid-19 pandemic and the government’s launch of a series of fiscal and fiscal measures to mitigate the impact of the pandemic on the economy have affected revenue collection since last December.
In the first seven months of fiscal 2021, the government collected net revenue of 1.22 trillion baht, or 129 billion baht below its target.
Ms Kulaya said the ministry has taken many steps to improve its tax collection capacity and make it easier for people to pay taxes to further broaden its taxpayer base.
Among the measures included are support for online tax payments and the adoption of technologies such as blockchain to strengthen the management of tax collection and the tracking of tax payments.
In addition, he revised tax laws to ensure they are in line with the current situation, including the introduction of an electronic services tax.
From September 1, foreign companies providing online services in Thailand will be required to register for a 7% value added tax (VAT) if their annual income exceeds 1.8 million baht.
The electronic services tax has been approved by parliament and published in the Royal Gazette. Electronic service businesses subject to payment of VAT include those that offer movie, game, sticker, brokerage, and advertising downloads.