According to the Excise Department, the target set for fiscal 2021 is 530 billion baht ( $17,543,863,900), a figure that is just shy of the tax revenue collected in fiscal 2020, which was 548 billion baht. ($18,141,189,280)
The excise department of Thailand is looking to integrate blockchain technology in revenue collection as well as its generation in a bid to get its economy back on track. In a report released on Monday, the Excise Department, under the scope of the Thai Ministry of Finance revealed how they plan on creating a system that will boost the efficiency in tax receipt collection and after months of deliberation and preparation, blockchain adoption seems to be the way. The department is responsible for the collection of taxes on the sales of goods and products manufactured and sold internally.
According to the department chief, the Excise Department’s quest to implement blockchain technology started last year as a team was tasked with creating a blockchain-based system which can assess the tax returns of the country’s oil export without any difficulties due to the industry’s large revenue generation. The Thai oil export department generates over 300 billion baht ($6,621,530) annually and makes up two-thirds of the total revenue collected by the Excise department.
Lavaron Sangsnit, the department’s director-general speaking to reporters stated that Thailand’s economy is still in the recovery phase and raising existing taxes in the country would derail its progress. The department, therefore, searched for several ways to achieve the tax target set by the finance ministry.
According to the report, the other two tax agencies in the country, the Customs Department and Revenue Department will also follow in the footsteps of the Excise department and start a blockchain-system for their operations.
Lavaron added that the implementation of blockchain technology in the Excise department will help identify the price duty and tax liability on imported products and above all, curb tax evasion in the country as the three departments will have a synchronized system when conducting tax audits. The blockchain technology will be tasked with tax revenue collection for the 2021 fiscal year, and should be able to help in determining whether the oil is actually exported out of the country or if it is just circulated for sale in Thailand, he added
According to the Excise Department, the target set for fiscal 2021 is 530 billion baht ( $17,543,863,900), a figure that is just shy of the tax revenue collected in fiscal 2020, which was 548 billion baht. ($18,141,189,280)
The blockchain-system is expected to be implemented in the first quarter of 2021, according to the Excise department chief. The Thai Excise Department, Customs Department and Revenue Department now adds to the already active number of organizations in Thailand, taking a blockchain approach into operating. The Thai central bank, Bank of Thailand launched a blockchain-enabled platform for the issuance of government saving bonds and earlier this year.
