The Thai Excise Department will employ blockchain technology to refund overpaid tax returns from oil exporters according to a Nov. 25 report by Bangkok Post.
Per the report, the government department, which is responsible for taxing goods produced in the country, hopes that adopting blockchain technology would allow for a more thorough inspection of taxes.
Under the current practices, oil exporters reportedly have to submit documents before getting a tax waiver, and the inspection process is not as thorough as it should be.
However, the new process which should go live by mid-2020, according to the Excise Department director-general Patchara Anuntasilpa will significantly simplify the tax refund setup.
Oil exporters will only have to pay an excise tax to the department and then claim overpaid taxes after they’ve shipped fuel to the destination. As long as the involved exporters submit the right documents, Patchara noted that the new blockchain-based process is bound to take a shorter time.
An unnamed source also suggested that the new system would ‘prevent operators from smuggling exported oil for local sale while still enjoying tax benefits.’
Interestingly, the blockchain-based tax refund system is only one of the three use cases that the Thai Excise department is exploring through a partnership with state-owned Krungthai Bank (KTB). The Department is also working towards using blockchain technology for e-bank guarantees and annual fee payment for liqueur, tobacco, and playing card distribution licenses.
Meanwhile, in another recent report about blockchain adoption, we report that Alibaba Pictures tokenized film distribution rights in a bid to raise funds for and more efficiently distribute movies that it produces.