The Excise Department is working with Krungthai Bank to develop a blockchain-based tax refund system.
This department is also seeking ways to integrate blockchain technology in the tobacco, liquor, and other industries. Blockchain technology has found many use cases around the world, and Thailand has found a new option, a tax refund system.
According to reports from The Block, the Excise Department in Thailand is planning to implement a system for oil exporters that would be based on blockchain technology. The system is likely to be worked on between the government agency and Krungthai Bank, though it won’t be adopted until mid-2020.
The director-general of the department, Patchara Anuntsasilpa, told the Bangkok Post that the blockchain-based system will make it easier to inspect tax payments. With the currency system, multiple documents are necessary for oil exporters to receive tax exemptions, and there’s limited inspections for validation.
By adding blockchain technology, the department will have the access to data involved with oil exports, which they can verify accurately and quickly, showing all of the details from the refiner to the destination.
Blockchain technology would make the refund process about three times faster than it currently is, and the export oil tax leakage would see a substantial reduction, according to an anonymous source. However, the agency’s venture into blockchain technology for tax refunds isn’t the only way that it is getting involved with Krungthai Bank.
Among other projects, the Excise Department is looking to create e-bank guarantees with blockchain technology, as well as annual fee payments for liquor, tobacco, and other industries. Last year, blockchain technology was also discussed by the Revenue Department as a way to stop fraudulent value-added tax (VAT) refund claims in Thailand.
Thailand is one of the many countries that has found ways to use blockchain technology, and the most recent endeavor has the Excise Department getting involved. How will the new tax refund system work for oil exporters? Will other industries see a positive impact as well?