Import duties plunge thanks to strong baht

The exchange rate, economic conditions and free-trade agreements (FTAs) have affected import duty revenue for the Customs Department, with collections 8% below target for the first three months of fiscal 2026.

- WICHIT CHANTANUSORNSIRI

The Customs Department has collected limited revenue from car imports due to the transition to electric vehicles under the government's incentive programmes. SOMCHAI POOMLARD

According to Phantong Loykulnanta, the department's director-general, the revenue target for fiscal 2026 assigned by the Finance Ministry is 122 billion baht. In the first three months of the fiscal year (October-December), the department collected 28.6 billion baht, a shortfall of 2.47 billion baht.

He said there were three factors affecting revenue collection. The first major challenge is baht volatility. The revenue target was projected based on an exchange rate of 34-35 baht per US dollar, but the baht has appreciated to 31 per dollar.

Weak economic growth also limited revenue collection. Growth was previously projected at 3.5%, but reduced rates resulted in lower import volumes and economic activity.