Victor Ugochukwu · Dec 14, 2020 . 5min read
Thailand uses Blockchain technology to enhance revenue collection
Thailand's Excise Department will use blockchain technology to improve its revenue collection with the Revenue and Customs Department.
By Komal Joshi · Dec 14, 2020 . 6min read
According to the reports, Thailand’s tax collection agency will use blockchain technology to enhance tax payments next year. The Excise Department will apply blockchain to improve its revenue collection rather than raising taxes. According to a report, director-general Lavaron Sangsnit emphasized that new policies should not modify the domestic economic improvement and also increasing taxes could curb the still brittle situation.
The Asian country has started combining blockchain in the oil industry, with the launch listed in the first quarter of 2021. The administration will expect oil exporters to pay excise taxes and maintain overpaid taxes after they have dispatched the fuel. The claim process will be easier for oil exporters by utilizing a distributed ledger. Thailand’s economy, like every other nation globally, has been sceptically influenced by Covid-19. Nevertheless, rather than raising the taxes, the Thai government concentrates on updating its revenue collection as it attempts to restructure the economy.
Thailand’s Revenue and Customs Department to adopt Blockchain Technology.
The Revenue and Customs Departments will also consolidate blockchain technology into their services in 2021. Sangsnit stated that blockchain would support these departments to assess tax liabilities, import duties, and prices. The three departments will connect blockchain-based stock data into a single database. Thus, making tax evasion more complicated. When questioned about the department commencing to combine blockchain in the oil export business, Sangsnit elucidated that it was because oil is the highest tax revenue generator in Thailand. The oil industry estimates for two-thirds of the Excise Department’s total revenue collection. It is about 200 billion baht ($6.7 billion) yearly, he explained.
Thailand has been traversing blockchain technology for various uses in the last two years. Earlier it was reported that the nation is attempting to save court records on a blockchain platform. The Thai Office of Courts of Justice announced that it’s trying to transfer its complete judicial information to the blockchain platform by 2021. The Bank of Thailand (BoT) has also been investigating a CBDC which it has issued to a few large enterprises. The BoT has also collaborated with the HKMA (Hong Kong Monetary Authority) on its CBDC quest. Thus, attempting to use digital baht in transactions within the two Asian nations.
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