Thailand's revenue mobilization is on par with other Asian countries-averaging 18.4
percent of GDP before the crisis-though taxes account for a relative larger share of GDP (16.6
percent). Compared to other, similar-income countries, it has traditionally relied heavily on
indirect taxes and corporation taxes. The revenue share from direct taxes is low--about one-third
of total revenues--and is composed mostly of corporation taxes (personal taxes are less
significant). Substantial revenue comes from import duties and selective sales taxes, which tend
to be more distortionary than broader-based taxes like the value added tax (VAT). State Owned
Enterprises generate net revenue; remittances contribute I percent of GDP (around 5 percent of
total revenues). During the boom years, Thailand's revenue collection systematically exceeded
expectations without significant effort, and it was characterized by the IMF as "modern,
reasonably efficient, and broadly in conformity with international good practices.