BANGKOK, Thailand – Thailand is preparing to reduce excise taxes on E20 petrol and B20 biodiesel in a move aimed at supporting domestic farmers and encouraging the use of alternative energy produced from locally grown agricultural crops.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the tax reductions would focus specifically on the two fuel types, which use agricultural products grown by Thai farmers.
E20 petrol contains ethanol, which can be produced from sugarcane and cassava, while B20 biodiesel is made using palm oil. Both fuels offer markets for domestic agricultural products, linking the country’s energy policy with efforts to support farmers.
Ekniti said the planned reductions were in line with the government’s policy of prioritizing alternative energy sources that provide direct benefits to Thailand. “If excise taxes are reduced for alternative energy, the fuels that benefit Thailand are E20 and B20,” he said, explaining that the government wanted to support fuels made using raw materials produced by Thai farmers.
The proposed tax cuts are expected to help promote demand for agricultural products used in biofuel production, particularly sugarcane, cassava and palm oil. However, the minister did not specify the size of the tax reductions or an exact implementation date, saying only that the measures would be introduced soon.
