Tax collections unaffected by global economic woes, says FPO
Tax collections unaffected by global economic woes, says FPO
BANGKOK, Nov 18 (TNA) – Fiscal Policy Office Director-General Somchai Sajjapong on Monday expressed confidence that the government's tax collections would not be affected by the global economic meltdown as many have been predicting.
He said that many parties are concerned that tax collections would miss its target since the global economic crisis is expected to take a toll on the Thai economy.
However, the FPO believes it should not be worrisome if tax collections are slightly less than targeted earlier.
In the first nine months of this year, Mr. Somchai said, financial institutions had combined net profits of almost Bt 80 billion, higher than that of the corresponding period the year earlier.
He believed the financial institutions and listed firms on the Stock Exchange of Thailand (SET) would continue to enjoy handsome profits next year, so he is confident that tax collections would not be affected as many worried.
Mr. Somchai said the FPO will closely monitor revenue collections, and prepare measures with which to respond in case there is a shortfall in revenue.
However, he remained certain that Thailand's gross domestic product (GDP) would grow 5 per cent this year and 4-5 per cent next year because economic fundamentals remain strong.
Mr. Somchai conceded external factors are more worrisome than earlier expected, necessitating boosting the local economy to ensure its strength.
He said the government had increased the planned budget deficit by Bt100 billion and injected it into the economic system.
"The decision to raise the deficit should be considered one of the (more) assertive measures the government has taken to cope with next year's economic volatilities," Mr. Somchai said.
Still, he thought the government would not further increase the budget deficit because it must maintain fiscal discipline. (TNA)
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opps .....................:rolleyes:
EARNINGS
Listed companies' earnings drop 6% in Q3
Tue, November 18, 2008
Listed companies suffered a 6 per cent drop in net profits in the third quarter, despite the 34 per cent increase in turnover, according to the Stock Exchange of Thailand.
When global economy showed weaker growth, their combined net profits dropped to Bt97.85 billion, though combined turnover was as high as Bt2 trillion.
In the first nine months, the earnings however rose 26 per cent Bt394 billion on top of combined turnover of Bt5.7 trillion.
"The increase in the nine-month earnings and turnover demonstrated Thai companies' resilience to the global financial and economic crisis," said SET President Patareeya Benjapholchai.
By industry, the Resources sector which contains energy stocks like PTT showed the combined net profit of Bt153.48 billion, up 2 per cent on year. Oil prices peaked in July at US$147 a barrel and plunged sharply in the subsequent months.
Those in the Financials sector - including banks, securities companies and insurance companies - posted combined earnings of Bt78.6 billion, up 199 per cent from the same period last year.
The Property & Construction sector's combined earnings reached Bt45.8 billion, down 22 per cent.
Providers of industrial raw materials reported earnings of Bt37.96 billion, up 77 per cent on year. Combined earnings of technology-related companies were Bt34.7 billion, up 34 per cent.
Those in Services sector which include media and hotel companies showed a 21 per cent drop in earnings to Bt18.4 billion.
Thanks to the sharp hikes in average prices, those in the agricultural and food sector enjoyed a 112 per cent increase in net profits, at Bt16.96 billion.
Those in the consumer products also enjoyed a 48 per cent increase in net profits, at Bt4.25 billion.
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