Customs Department tax targets expected to drop in 2006
MCOT, 2005-12-25
Customs Department tax targets expected to drop in 2006
BANGKOK, Dec 24 (TNA) — The Customs Department’s tax targets are expected to fall next year, due to Free Trade Area dealings between Thailand and a number of foreign countries — as well as cuts in import tariffs on primary materials for electrical appliances, electronic goods and printing machinery.
Customs Department director general Sathit Limpongpan announced that collections of the customs taxes would certainly drop from an earlier projected estimate of Bt120 billion (US$3 billion) throughout next year.
Because of these falling revenues, customs taxes would account for less than 5 per cent of total tax revenues annually over the next several years, compared to a mere 1 per cent in developed countries, the department chief said.
Besides the FTA agreements — under which Thailand and trading partners are committed to slashing or nullifying the tariffs — the drop in import tariffs on primary materials for electrical appliances, electronic goods and printing equipment which will be assembled and manufactured in Thailand will considerably promote domestic industries in competition with foreign countries, such as China, according to the Customs Department chief.
The falling revenues faced by the Customs Department have been the subject of consultations with the Finance Ministry’s Fiscal Policy Office about the matter, he explained, as government agencies seek ways to make up for the projected decline in tax revenues next year, Mr. Sathit said.
He also indicated that the authorities will intensify their crackdown on smuggled goods.
