Thailand’s tax collection agency will use blockchain technology to simplify tax payments next year.

The tax office will use the blockchain to improve revenue collection instead of actually increasing taxes as Thailand’s economy continues to recover.

According to the Bangkok Post report, CEO Lavaron Sangsnet emphasized that the new policy should not affect local economic recovery, and that tax increases could prevent the still fragile situation.

The government aims to increase 530 billion baht ($ 17.5 billion) by fiscal year 2020, down 3.3% from 548 billion baht ($ 18 billion) collected in 2019.

In 2021, tax and customs departments will also integrate blockchain technology in their operations. Sangsnit said that blockchain will help these departments calculate tax liabilities, import duties and prices.

These three divisions will combine blockchain-based aggregation data into a single database, making tax evasion more difficult.

Last year, the IRS began using blockchain technology to assess tax refunds for oil exporters. The system will require oil exporters to pay excise duty and demand additional duty after fuel has been shipped. The use of a distributed ledger is said to make the petroleum exporters’ claims process faster and more transparent.

Oil export revenues form an important part of Thailand’s state budget, amounting to around 200 billion baht per year ($ 6.6 billion), or about two-thirds of the total revenues collected annually.

Sangsnet said that this new system for oil exporters should be fully operational in the first quarter of 2021.

Source: CoinTelegraph

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