The Thai cabinet decided to reduce excise tax on diesel fuel today (Tuesday), by an average of three baht per litre for three months, in a bid to ease the impacts on the general public of the rising cost of living.
Government Spokesman Thanakorn Wangboonkongchana said that the excise tax reduction will reduce the pump prices of diesel by an average of three baht/litre, which will subsequently be reflected in a reduction in the prices of consumer goods.
The tax reduction on diesel will become effective immediately after the issuance of a ministerial regulation and will remain in place until May 20.
Currently, the pump price of diesel is capped at 30 baht/litre.
Recently, the Land Transport Federation of Thailand has been demanding that the government reduce the pump price of diesel to 25 baht/litre, with the threat of an intensification of protests by truckers. Their demand has, to date, been rejected.
Thanakorn explained that the excise tax reduction will manifest in a loss of revenue for the government of about 17.1 billion baht over the three-month period, after the government has already been seeing a tax revenue shortfall of about 5.7 billion baht/month for the past four months.
Details of the tax reductions are as follows:
• For diesel with a sulphur content exceeding 0.005%, the new excise tax is 3.44 baht/litre against the previous tax of 6.44 baht/litre.
• For diesel with a sulphur content not exceeding 0.005%, the new tax is 3.44 baht/litre against the oil rate of 6.44 baht/litre.
• For diesel with methyl ester biodiesel content not exceeding 4%, the new tax is 3.44 baht against the previous tax rate of 6.44 baht/litre.
• For diesel with methyl ester biodiesel content exceeding 4% but not more than 7%, the tax rate is 3.2 baht/litre against the previous rate of 5.99 baht/litre.
• For diesel with methyl ester biodiesel content exceeding 7% but not more than 9%, the new tax rate is 3.17 baht/litre against the previous rate of 5.93 baht.
