Thailand Reports 996 Billion Baht in Tax Revenue for First Five Months of Fiscal 2025

Thailand has reported tax revenue reaching 996 billion baht in the first five months of fiscal year 2025 (October 2024 to February 2025). This figure wa reported by the Ministry of Finance.

The 996 billion baht—approximately 996.458 billion baht in net revenue—stems from several key sources. A large contributor was the Value Added Tax (VAT) collected from domestic consumption, which saw a big increase compared to the previous year. This surge in VAT revenue points to increased consumer spending, possibly driven by economic stimulus measures and a rebound in tourism and related sectors. Additionally, the revenue was helped by carry-over payments from state-owned enterprises, which had deferred some of their contributions from the prior fiscal year, and higher-than-expected proceeds from bond sales tied to deficit financing. These factors collectively helped the government meet, and even slightly exceed, its revenue projections for the period.

However, the picture isn’t entirely rosy. The Ministry noted that gains were partially offset by larger-than-anticipated tax refunds issued by the Revenue Department, which returned money to taxpayers, and a dip in vehicle tax revenue, which fell below expectations. Despite these setbacks, the overall revenue collection remained aligned with the government’s fiscal targets.

On the expenditure side, the government disbursed approximately 1.788 trillion baht during the same five-month period, significantly outpacing the revenue collected. This resulted in a cash flow deficit, with total revenue remitted to the treasury amounting to 996.092 billion baht. To bridge this gap, the government relied on borrowing, a common practice to cover budget shortfalls and sustain public spending on infrastructure, social programs, and economic recovery initiatives.

This revenue performance comes in the context of Thailand’s broader economic landscape in 2025. The country has been navigating a gradual recovery from global economic disruptions, with tourism—a cornerstone of its economy—showing signs of revitalization. The government’s fiscal strategy, including measures like the 10,000-baht cash handout program implemented in prior years, has aimed to stimulate domestic consumption and reduce poverty, which dropped from 8.5% in 2023 to 8.2% in 2024. The 996 billion baht in tax revenue suggests these efforts may be bearing fruit, though challenges like high household debt, slowing export growth due to weaker demand from key trading partners, and fiscal sustainability remain on the horizon.