Thailand's Excise Department is collaborating with Krungthai Bank to use DLT technology totax refunds to oil exporters and to prevent VAT fraud in the country.
The department plans to launch a blockchain system for excise tax refunds to oil exporters by mid-2020.
The current VAT rate in Thailand is7% on the sale of goods and services in the country. Blockchain has the potential to provide the excise department with a clearer picture of the export route – from the refinery to the port of shipment – all the way to the destination country. In addition, a blockchain tax refund system can speed up 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.
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