PM Srettha Thavisin confirmed the Thai economy in the fourth quarter definitely improved while the government prepared to implement additional measures in the third quarter.
Prime Minister Srettha Thavisin said that the Thai economy in the quarter 4(October – December) will definitely improve. The government is considering implementing additional measures in the third quarter (July-September) covering tourism and others.
“This afternoon there are panel discussions with relevant economic agencies including revenue collection, budget disbursement, and the distribution budget as quickly as possible in a bid to boost the economy.”
PM also met three revenue collection agencies including the Revenue Department, the Customs Department, and the Excise Department. Three agencies have reported PM on revenue collection from October 2023 to May 2024.
The government has source of fund 10 bn
After the meeting, Mr Lavaron Saengsnit, permanent secretary of the Finance Ministry
said the ministry reported to the PM on the progress about a revenue collection.
When asked how revenue collection is currently lower than the target,
Mr Lavaron said the revenue collection is on the plan.
To ask about the additional expenditure budget for 2024 fiscal budget which has a target of additional revenue collection 10 billion baht and what is a source of income. Mr Lavaron said the ministry has already a source of revenue of 10 billion baht.
Excise tax collection was below the target
Mr Ekniti Nitithanprapas, director general of the Excise Department said that as of May 31, 2024,
the revenue collection of the department was lower than the target by approximately 24 billion baht.
Previously, the Excise Department set quite a high target of revenue collection growth by 25%.
“However, the revenue collection of the department this year was still higher than last year. The revenue collection from Oct 2023 – May 2024 is 11% higher than the same period last year.”
Low collection caused by diesel subsidy and EV measure
The revenue collection was below target because the government reduced excise tax for diesel subsidy measures. “The department has supported both policies to reduce oil taxes and the excise tax on EV cars,
which helps Thailand have more investment in this industry. For the EV car, the government collects only 2% . As for the combustion car, the collection is 25-30%. The policy supported EV sales to grow 600% this year, as well as driving a new industry.”
PM prepare measure for better logistics
The PM also posed in “X” platform that “Air, rail and road linkages prep for the upcoming tourism campaigns. This morning, I have discussed with relevant public and private stakeholders in preparation for air, rail and road linkages for the upcoming months. Even though this is usually considered a low season for the Thai tourism industry, with new campaigns especially on culture – and nature – related tourism. I am sure these next few months will be an interesting time for both domestic and foreign tourists to visit our undiscovered destinations”.
Joint Private Sector maintained economic forecast
The Joint Private Sector Committee (JPC) maintained their projection for the Thai economy in 2024 of ranging 2.2-2.7% because the growth in Q1 was only 1.5%. The economy in Q1 expanded at a slower pace than the previous quarter due to a contraction in exports and government spending.
The prospect for the Thai economy is likely to have a limited recovery caused by slowly recovering exports following the slowdown in world trade.
The El Niño(drought) also caused a decrease in agricultural production. As well as a slowdown for household spending, it is affected by high levels of household debt.
The JPC estimated that trade war between the United States and China tends to be prolonged and more drastic.
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