Revenue Dept adding millions to tax rolls

About 3-4 million people are expected to be added to the

personal income tax system after the full-scale implementation

 of national e-payments, the Revenue Department's head says.

The higher number of taxpayers will boost state coffers

 without raising tax rates, director-general Prasong

 Poontaneat said.

About 10.9 million people submit tax filings but 6.4 million

are exempted because their incomes are too low.

The department reported for 2014 the largest taxpayer group

of 1.63 million was those earning 150,001 to 300,000 baht

 a year. Only 24,700 declared income of more than 4 million

 baht.

 Mr Prasong said the e-payment system will link all trade

and service transactions with the taxation system to allow

 the agency to estimate tax collection more accurately and

reduce tax evasion.

The e-payment system has five modules: Any ID will enable

anyone to transfer money and make transactions using their

 ID card, mobile number or email address; the expansion

of electronic data capture (EDC) ); linking e-payments and

 the Revenue Department's taxation system to make tax

 collection more efficient; social welfare allowing the

 government to subsidise all low-income earners directly by

 using only their ID cards; and a campaign offering incentives

to encourage people to use the e-payment system.

The Finance Ministry expects Any ID and EDC expansion to

 start in the first half of this year, with all five modules

implemented by year-end. Mr Prasong said the Revenue

 Department will invest 1-2 billion baht to develop its computer

system to prepare for linking it with the e-payment system.

The first phase will take six months to connect the system

with state agencies to alert the department when individuals

 make a transaction. The second, to enlarge the information-

receiving terminal, will take 1-2 years.

The Revenue Department expects its tax collection will fall

 short of target by 100 billion baht this fiscal year due largely

to declines in value-added tax (VAT).

For the first two months of fiscal 2016, starting from Oct 1 last

year, tax collection was 7-8 billion baht below target, with

about 2 billion in foregone revenue resulting from the

decline in VAT on petrol purchases.

"Several tax measures will hurt tax collection but we consider

they are worthwhile as they can help develop the country in

the long run," Mr Prasong said. These include the shopping

 tax deduction over the recent festive season and cuts in tax

 for small and medium-sized enterprises.

Fiscal Policy Office director-general Krisada Chinavicharana

said the national e-payment system would add 150 billion baht

 a year to the government's coffers, while the implementation

 of land and buildings tax could offset missing revenue from

 tax incentives.

News,Business News,Bangkok Post,11 January 2016.

Good news,but the problem is how the e-payment system can

 provide accurate information for link to the tax system.

 Hope the Revenue Department  can meet their  target as plan.

 

Sincerely Yours.