BANGKOK, 27 June 2012 – The government has decided to extend the tax exemption on diesel sales by one more month.
Deputy government spokesperson Pakdihan Himathongkham said on Tuesday that the weekly Cabinet meeting has resolved to postpone the expiry date of the exemption of excise tax collection on diesel from June 30th to July 31st.
The extension of the tax exemption is estimated to cost the government around 9 billion baht per month in lost revenue.
Previously, Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong had stated that the tax exemption for diesel sales would not be extended in order to allow the State Oil Fund to boost its cash reserve, which is essential in stabilizing the country’s fuel prices.
Mr. Kittiratt also stated that the resumption of the excise tax collection will help the government achieve its revenue target of 1.98 trillion baht by the end of the current fiscal year, or October 31st.