The Revenue Department is comfortable with its revenue target for this fiscal year as it is optimistic the improving economy and accelerating public investment will generate higher tax revenue, its chief says.
Economic growth in 2017 could expand at a faster pace than the past few years when political chaos stalled the country's economy in 2014 and dismal exports slowed growth in 2015 and 2016, said director-general Prasong Poontaneat.
The department has a revenue target of 1.87 trillion baht for the 2017 fiscal year. The country's largest tax-collecting agency collected 1.76 trillion baht, 7.2% below target, in the 2016 fiscal year ending on Sept 30, 2016.
The department's revenue was 900 million baht higher than targeted in October 2016 and 67 million higher in November.
The increase in estimated budget disbursement to invest in big-ticket infrastructure projects, comprising 200 billion baht coupled with the 190-billion-baht mid-year budget for local developments, will boost domestic investment and economic growth, said Mr Prasong.
The government is pushing to increase the number of large-scale infrastructure projects that break ground to prompt the private sector to invest, warding off downside risk to growth. The Finance Ministry has instructed state enterprises to front-load investment spending earmarked over the next two years in 2017 to boost the country's economic growth amid lacklustre private investment.
Finance Minister Apisak Tantivorawong recently estimated that the government's plan for massive spending from the mid-year budget for local developments and front-loaded spending by state enterprises is expected to add at least 0.2 to 0.3 percentage points to economic growth next year.
The ministry's Fiscal Policy Office forecast GDP growth of 3.4% next year, beating the Bank of Thailand's projection of 3.2%.
Mr Prasong said if prices of the main agricultural products -- rice, rubber and maize -- increase, it will come as a boon to domestic consumption and the Revenue Department could reap a value-added tax windfall.
However, oil prices are a negative factor as the department's 1.87-trillion-baht target is based on a Dubai crude price of US$60-65 per barrel, but the current level is $51-$52 a barrel, he said.