Higher local tax on oil and gas approved

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BANGKOK, 6 October 2015  – Mr. Witoon Kulcharoenwirat, the Director-General of the Department of Energy Business, said that a local maintenance tax on oil and gas in Bangkok will be increased by five Satang per liter starting from October 15.

The Provincial Administrative Organizations and Bangkok Metropolitan Administration (BMA) are allowed to collect taxes from oil and tobacco retailers at a rate of 10 satang per liter., double the rate of five satang per liter. Tax on oil and gas has already been collected in the provinces except for the three southernmost provinces.

Bangkok oil users are willing to cooperate in paying the taxes but they want to see a clear Bangkok development plan as they do not want to waste their money. Meanwhile, oil business entrepreneurs admitted that the imposed taxes will result in an increase in oil prices and could affect sales.

Collecting local taxes on benzene, diesel and petroleum gas from gas stations will earn Bangkok an additional 500 million baht per year. On October 6, BMA will invite entrepreneurs to discuss the matter and ask them to bear the burden for the public.