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VAT cut to boost jewelry export

Mon, 29 Jun 2009 12:20:02 +0000

BANGKOK, 29 June 2009 (NNT) – Value added tax (VAT) cut from raw material imports of gems for the jewelry industry will boost jewelry export value to 300 billion baht this year, said Deputy Commerce Minister.

Deputy Commerce Minister Alongkorn Ponlaboot revealed that the governments policy would make Thailand more competitive, and cut production cost for entrepreneurs. He was confident that the jewelry export value would increase to 300 billion baht, which would result in less negative value of Thai overall export this year.

He believed that this measure would benefit many parties, because currently the global economy was improving, which was the main factor to push Thailand as a jewelry production center of the world. In the past VAT had affected Thai jewelry industry’s competitiveness when compared to other countries.

Thailand’s economy signalling recovery not far off, says FPO

Mon, 25 May 2009 02:27:53 +0000

BANGKOK, May 16 (TNA) – Thailand’s economy has signaled a recovery as witnessed by improved exports of various product items, a surge in the Stock Exchange of Thailand’s index to 500 from 400 points, and an easing in unemployment figures, according to the Fiscal Policy Office.

However, FPO’s Director-General Somchai Sujjapongse said there are certain factors that need to be monitored given that the government’s revenue is expected to fall short by 280 billion baht less than forecast.

Another positive sign for the economy is an increase in value-added tax (VAT) collection nationwide to 35 billion baht in April from 30 billion baht the month before.

He said the agency will continue to monitor VAT collection in May and June with the expectation that revenues would to improve on the back of increasing domestic consumption. Regarding a revelation by the Thai Chamber of Commerce that consumer confidence index in April had dropped in all categories for the third consecutive month, he said the data was based to a great extent on pessimistic predictions and had the current VAT collection data been available, results of the survey might have been different.

However, the FPO is projecting gross domestic product (GDP) will shrink 6 per cent in the first quarter of this year, 4 per cent in the second quarter, and 3 per cent in the third quarter before turning to growth of 1 per cent in the fourth quarter.

GDP for the whole year is forecast to contract on average between 3 and 4 per cent, he said. (TNA)

Thai govt revenue in first seven months of fiscal 2009 down 16.67% from projection

Mon, 25 May 2009 01:59:43 +0000

BANGKOK, May 16 (TNA) — Government revenue in the first seven months of fiscal 2009 – from last October 1 to April 30, 2009 – fell 16.67 per cent below projections, a senior Thai Finance Ministry official said.

Somchai Sujjapongse, Director-General of the Fiscal Policy Office said government revenue during the period stood at Bt644.651 billion, down from Bt773.584 billion projected earlier.

The sharp decrease in government revenues from the target number was attributed to falling tax collections, a drop in budgetted revenues from government-run state enterprises and rebates and allowances instituted by the Revenue Department during the first quarter of fiscal 2009, said Mr. Somchai.

Value-added tax (VAT) and personal income tax collections during the period also slipped 18.6 per cent and 7.6 per cent respectively due to the sluggish economy in the country and tax reductions offered by the government, he said.

Although the government earlier this month increased excise tax on alcohol drinks which could generate higher income, the Finance Ministry forecast that government revenue for the entire fiscal 2009 would definitely retreat from an earlier projection of about Bt1.6 trillion, Mr. Somchai said. (TNA)