Policy Approaches and Fiscal Challenges in Revenue Generation for the Thai Government in the 21st Century

Abstract

This academic article aims to analyze the challenges and strategies for revenue generation by the Thai government in the 21st century, under the rapidly changing context of the global economy, the rising significance of digital technologies, and the constantly evolving consumer behavior. Although Thailand’s tax system can generate a certain level of revenue, its heavy reliance on indirect taxes such as the Value Added Tax (VAT) renders it regressive. In effect, lower-income individuals bear a proportionally higher tax burden than those with higher incomes. Also, the present tax plan does not have the ability to change quickly during money problems and financial ups and downs. Tax evasion, especially by big companies and those in online business, shows a clear need to update the tax system. The government must think about putting taxes on internet services that cross borders, online sites, shared services, and short-term workers. At the same time, new technologies like AI and Big Data need to be used to boost tax income checks, watching closely, and guesses. Public-private partnerships should also be encouraged for lessening money troubles and making spending clearer more efficient Another key plan is to build a strong tax culture by giving rewards like tax reductions or credits for good taxpayers. Also, the government needs to make plans for the middle and longtime ahead, such as cutting back on borrowing, creating steady income sources with a wealth fund, and using tools to manage money risks.͏ Big changes in rules, structure and culture are very important for making public finance safe over time.