Tax Collection in Thailand: A New Era

Thailand is stepping into the future of tax collection with the implementation of blockchain technology. The Excise Department has announced plans to incorporate this innovative solution in an effort to streamline tax payments and enhance revenue collection without imposing additional tax burdens on its citizens.

The Strategy Behind Blockchain Adoption

Director-general Lavaron Sangsnit emphasizes the necessity of balancing economic recovery with tax policies. Rather than raising taxes—a move that might slow down the ongoing economic rebound—the government aims to leverage blockchain’s efficiencies. By using this new technology, officials hope to meet their ambitious revenue targets while keeping taxpayers happy.

Revenue Goals for 2020

The Thai government has set a revenue target of 530 billion baht ($17.5 billion) for the fiscal year 2020, a decrease of about 3.3% from the previous year. This tempered goal reflects the nation’s cautious approach amid the gradual recovery from economic downturns.

Future Projects with Blockchain

But wait, there’s more! The Revenue and Customs Departments are also gearing up to implement blockchain technology. This integration aims to simplify the calculation of tax liabilities, import duties, and pricing structures. Ultimately, the three departments plan to merge their blockchain-based data into a unified database, tackling the challenge of tax evasion head-on.

A Boost for Oil Exporters

Last year, progress was made when the Excise Department began using blockchain for managing tax refunds for oil exporters. In this system, oil exporters will be responsible for paying excise taxes upfront and can later claim back overpaid taxes after shipping the fuel. By employing a distributed ledger, the claims process is expected to become significantly quicker and more transparent for all parties involved.

Impact on National Revenue

Oil export revenues play a vital role in Thailand’s budget, contributing approximately 200 billion baht ($6.6 billion) annually—almost two-thirds of the total revenues collected. The new blockchain system for these exporters is expected to be fully operational by the first quarter of 2021, promising to enhance both efficiency and accountability in tax collection.