The government’s revenue collection for the first 11 months of fiscal 2025 fell short of its target by 34.1 billion baht due to lower collections than projected from auto excise tax, corporate income tax, and value-added tax (VAT) on imported goods.
According to the Finance Ministry’s report, government revenue collection from October 2024 to August 2025 totalled 2.50 trillion baht, which was 46.8 billion baht or 1.9% higher than the same period the previous year, but still 1.3% below the target.
The shortfall was mainly attributed to weaker auto excise tax collections as the government offered tax incentives to promote the use of electric vehicles, while tax payments from the purchase of internal combustion engine vehicles were less than expected.
In addition, corporate income tax and VAT collected from imported goods were below target due to increased use of free-zone privileges and changing economic conditions.
However, revenue collected by other government agencies and remittances from state-owned enterprises exceeded projections.
Government revenues come from five main sources: the three tax-collecting departments, remittances from state enterprises, and contributions from other agencies such as the Treasury Department.
For the first 11 months of this fiscal year, all three tax departments collected amounts below their targets.
The Revenue Department collected 2.01 trillion baht, down 1.3% from its target, while the Excise Department amassed 489 billion, 11.8% less than its target, and the Customs Department collected 104 billion, a dip of 7.1% from its goal.
State-owned enterprises remitted 169 billion baht to the government for the period, 13.9% above target, while other government agencies contributed 203 billion baht, 26.8% above target.
Government revenue before tax refunds and VAT allocations to local administrative organisations, as required under the Fiscal Decentralization Act, amounted to 2.98 trillion baht. After these deductions, the government’s net revenue was 2.50 trillion baht.
A source at the Finance Ministry who requested anonymity said government revenue as a percentage of GDP has been steadily declining. In fiscal 2015, the percentage was 16.1%, declining to a projected 15% for fiscal 2025.
For fiscal 2026, the estimate is 14.6%, underscoring the need for fiscal reforms of both revenue and expenditure to ensure long-term fiscal sustainability, the source said.