The Excise Department of Thailand is preparing to set up a blockchain-based tax refund system for oil exporters.
The government agency is in talks with Krungthai Bank for developing the system, and plans to adopt it by mid-2020, according to a Bangkok Post report Monday.
Patchara Anuntasilpa, director-general of the department, told the news source that the blockchain-based system will help inspect tax payments thoroughly. The current system requires oil exporters to submit documents for tax exemption and the inspection is not as detailed as it could be.
Blockchain technology will let the department access and verify data related to oil exports (from refiners to depots to destination countries) quickly and accurately and is expected to speed up the refund process by three times and reduce export oil tax leakage, one anonymous source at the department was quoted as saying in the report.
The tax refund system is just one of the blockchain projects the agency is looking to work on with Krungthai Bank. It is also considering developing blockchain-based e-bank guarantees and annual fee payment for liquor and tobacco, among others.
Last year, Thailand’s Revenue Department was also considering implementing blockchain technology to prevent fraudulent value-added tax (VAT) refund claims in the country.