7-month government revenue higher than expected


BANGKOK, 14 May 2012  – Government revenue in the first seven months of the fiscal year 2012 has exceeded its target by 375 billion baht due to economic recovery and the fast rebounding automotive industry. 

Director of the Fiscal Policy Office Somchai Sujjapongse said the government’s April 2012 revenue was 139.5 billion baht, higher than forecast by 5.6 billion baht or 4.2%. The increasing revenue in April caused the government’s seven-month revenue, from October 2011–April 2012, to rise above target by 375 billion baht or 4.1%. Most of the extra revenue was from important taxes, such as value-added tax, import duty and corporate and personal income taxes, as well as state enterprises’ earnings paid to the government at a higher amount.

However, Mr. Somchai said the revenue from car and petrol taxes was below the forecast as a result of the flood crisis last year and the government’s extension of the diesel tax cut policy.

Growth in domestic consumption and the import sector, the government’s economic policy and the recovering automotive sector had positively affected the government revenue, the director said.

The Ministry of Finance has expressed confidence that the government revenue for the whole year will be near the target of 1.98 trillion baht despite the continued diesel tax decrease.