Thailand’s Ministry of Finance has reported a sharp shortfall in customs revenue for October 2025, the first month of fiscal year 2026, attributing the decline largely to the strengthening baht and expanded use of duty-free exemptions by importers in free zones.

The Customs Department collected just 9.24 billion baht — 12.0 percent below its target — leaving a gap of 1.25 billion baht.

Officials explained that the stronger baht depressed the baht-denominated value of imported goods, reducing the taxable base for import duties.

Additionally, a surge in duty-exempt imports under free-zone status further eroded expected collections.

Despite the setback at customs, the government’s overall net revenue collection for October stood at 235.73 billion baht — an increase of 27.39 billion baht from the same month last year, reflecting a 13.1 percent rise and close to planned targets.

Other major revenue streams performed strongly.

The Excise Department collected 42.55 billion baht, up 19.1 percent year-on-year and exceeding its target by 4.0 percent, thanks in part to taxes on fuel and alcohol.

The Revenue Department (taxes such as VAT and personal income) delivered 149.88 billion baht, up 2.0 percent from last year and marginally over target, signalling robust domestic consumption.

Additional receipts from state enterprises and bond-related income also helped cushion the shortfall from customs.

Analysts say the customs revenue shortfall reflects a broader challenge for Thailand’s export-and-import economy as the baht continues to appreciate — reducing the rupee-equivalent value of cross-border trade and threatening the competitiveness of exporters, though importers benefit from lower costs.

The government faces pressure to monitor currency strength while balancing trade, fiscal needs, and economic stability for businesses across sectors.