Thai Tax Collection Down Due To Political Turmoil

BANGKOK , March 30 (TNA) - Tax collection by three major departments under the Finance Ministry of Thailand has declined for five consecutive months while the Fiscal Policy Office (FPO) has also revised Thailand’s projected economic growth for 2014 to 2.4 per cent from 4 per cent, said FPO Deputy Director-General Aekniti Nititanprapas on Sunday. The sharp decline in tax collection by the Ministry’s Revenue, Excise and the Customs departments and the revised in gross domestic product (GDP) were resulted from the continued fall in domestic consumption and investment because of the current political unrest in the kingdom, Mr. Aekniti said. Effect from political turbulence is real as it is indicated from several economic indicators while the current caretaker government “can’t do anything to bolster the country’s economy”, he said, adding that new investment policies cannot be issued either. The only hope to stimulate the economy is for the government to disburse the 2.525 trillion baht expenditure budget for this fiscal year, which ends this September 30, as soon as possible, Mr. Aekniti said. The country’s economy could improve if between 90 – 95 per cent of the total fiscal budget could be withdrawn while state-run banks also offer lending without much restrictions, he said. A delay in preparing government expenditure for fiscal 2015 might affect spending and an investment by the state if a new government cannot be formed within the third quarter this year, Mr. Aekniti added. (TNA)