6 June 2024

The Thai cabinet decided today (Tuesday) to extend the 5-baht/litre excise tax cut on diesel fuel, from May 21st until July 20th, to ease the burden on the public and businesses and to stimulate the economy.

Finance Minister Arkhom Termpittayapaisith said that the cabinet’s decision is intended to prevent the retail price of diesel from increasing, in the wake of global oil price fluctuations due to the war in Ukraine and the baht’s depreciation, which would slow down economic recovery and increase the cost of living.

Excise Department Director-General Ekniti Nitithanprapas said that the extension of the tax cut means that the department’s tax collection will fall short by about 20 billion baht.

He said that, on the plus side, the tax cut will boost economic growth under the Excise Department’s strategy to use excise tax as the engine for sustainable economic growth.

Since diesel is the main form of energy consumed by business and industry, he said that the cut will help to lower the production costs of electricity, consumer products and transport services, which would otherwise increase substantially.