The pump rice of diesel will be increased by 5 baht/litre from July 21st, if the caretaker government of Prime Minister Prayut Chan-o-cha or the new government, which is yet to be formed, does not extend the excise tax cut introduced on February 18th last year.
Excise Department Director-General Ekniti Nitithanprapas said on Sunday that the caretaker government could seek approval from the Election Commission to extend the tax cut adding, however, that the issue has not yet been discussed with caretaker Finance Minister Arkhom Termpittayapaisith.
He warned that, since diesel fuel represents a major production cost for industry, a sudden price increase of 5-baht per litre will hamper economic recovery and place a heavy burden on consumers, as he suggested that the excise tax cut should be further extended.
The government first introduced excise tax cut by 3-baht/litre for three months, until May 20th last year, then the tax cut was increased to 5-baht/litre between May 21st and July 20th last year and this has been extended five times to date.
The total excise tax reduction will have cost the state a total loss of revenue estimated at 158 billion baht by July 20th, said Ekniti.
