October 1, 2022

Thailand expands blockchain application

Thailand expands blockchain application

Thailand Excise Department is working with Krungthai Bank to use DLT technology to tax refunds to oil exporters and to prevent VAT fraud in the country.

The department plans to launch a blockchain system to reimburse excise taxes to oil exporters by mid-2020.

Thailand currently has a VAT rate7% on the sale of goods and services in the country. Blockchain could potentially provide the excise department with a clearer picture of the export route — from the refinery to the port of shipment — down to the destination country. In addition, the blockchain tax refund system can accelerate the data processing process by almost three times.

Meanwhile, the excise department of Thailandconsiders other applications of blockchain technology. Currently, three joint pilot blockchain projects with Krungthai Bank are being prepared for launch: refund of fuel taxes, electronic bank guarantees and renewal of licenses for the gambling business, trade in alcohol and tobacco products.

It is worth noting that the state bank Krungthai is also studying a cross-border payment system using blockchain.