The extent of the economic slowdown has revealed itself in the government tax receipts for April, which missed their target by 5.4 per cent - the first monthly shortfall in the current fiscal year, which runs until September.

The result has contributed to a below-target tax collection in the first seven months of the fiscal year.

However, net government revenue - including contributions from state enterprises - exceeded the target by 1.7 per cent in April and by 1.5 per cent between October and April, according to a Finance Ministry statement yesterday.

Tax receipts collected by the Revenue Department, Excise Department and Customs Department last month totalled Bt100.93 billion, 5.4 per cent lower than the ministry had forecast. However, they rose 3.3 per cent when compared with collections in the same month of the last fiscal year, according to ministry spokesman Somchai Sujjapongse.

The Customs Department's receipts of Bt7.09 billion were off target by as much as 22.1 per cent, while the Excise Department's receipts of Bt24 billion missed its target by 14.4 per cent last month.

The Customs Department blamed the fall on a deceleration in imports. The Finance Ministry also pointed to the strengthening of the baht, as well as tariff cuts under free-trade agreements as leading to lower tax-collection levels.

Meanwhile, rising oil prices and a slowdown in consumption took their toll on tax collections by the Excise Department.

Areas that have been hit by cautious consumers cutting back on spending include alcohol and the sale of new cars. More holidays in April, notably the Songkran festival over the Thai New Year, were also blamed for lower spending and therefore lower tax receipts.

The Revenue Department, which collects value-added tax (VAT), corporate income tax and personal income tax, met its target by a narrow margin of 0.4 per cent, with receipts rising to Bt69.8 billion.

Net VAT on imported items totalling Bt35.3 billion was 2.9 per cent lower than the projection, a fall blamed on a slower import growth.

However, VAT levied on domestic consumption was up by 9.5 per cent. Corporate income taxes exceeded target by 3.4 per cent, rising to Bt17.07 billion. Personal income tax receipts worth Bt14.26 billion were 3.9 per cent above target.

Contributions from state enterprises and other government agencies worth Bt26.5 billion offset the shortfall of tax revenue collected by the three departments. This meant net revenue of Bt115.12 billion was collected in April, 1.7 per cent higher than the previous forecast and a 13.5-per-cent rise on the same month last year.

Lower-than-expected tax collections by the three departments in April also caused tax receipts in the first seven months of the fiscal year to miss the target by 0.4 per cent. Taxes of Bt692.77 billion were 5.7 per cent higher than collections in the same period of the last fiscal year.

Net government revenues, including cash received from state enterprises, rose in the seven months by 5.9 per cent to Bt682.9 billion year on year, 1.5 per cent above target.

Somchai said the government would meet its revenue target of Bt1.36 trillion for the current fiscal year, which means the budget will be balanced.

In a related development, Caretaker Deputy Finance Minister Varathep Ratanakorn said the government had allocated Bt220 billion to be spent in the first three months of the next fiscal year, reducing the impact of the delayed budget for fiscal 2007.

Wichit Chaitrong

 The Nation