Home Business Energy

Gov’t Considers Further Diesel Tax Cut

Thailand-Diesel-Prices-Gas-Pump-Station

The Finance Ministry is considering another cut the diesel excise tax to alleviate hardship caused by soaring fuel prices.

The government cut the excise tax on Feb. 15 by 3 baht, but that cut expires on May 20. Now the ministry said it is considering not only extending the reduction, but increasing the cut to 5 baht to relieve financial pressure put on by the Covid-19 pandemic and the Russia-Ukraine war.

Since its inception in February, the current tax cut has cost the Excise Department approximately 17.1 billion baht. Officials, however, argued that the losses were reasonable in light of rising inflation and living costs.

According to the Revenue Department, the government’s net revenue stood at more than 1.09 trillion baht during the six months of 2022, exceeding its target by 68.8 billion baht. The department collected 852 billion baht during this period, a 15.6 percent increase over the same period last year. The figure is also 13.5 percent higher than the department’s target expectations.

Despite uncertainties and challenges at home and abroad, Finance Minister Arkhom Termpittayapaisith expressed confidence that Thailand is still on track to meet its fiscal 2022 revenue target of 2.4 trillion baht.