Thai Airlines Association urges jet fuel tax cuts amid aviation industry struggles

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The Thai Airlines Association (TAA), representing low-cost carriers, has approached Deputy Finance Minister Julapun Amornvivat to advocate for a reduction in jet fuel taxes amidst ongoing liquidity struggles within the airline industry.

The Thai Airlines Association (TAA), representing low-cost carriers, has approached Deputy Finance Minister Julapun Amornvivat to advocate for a reduction in jet fuel taxes amidst ongoing liquidity struggles within the airline industry.

During the meeting, Julapun acknowledged the challenges outlined by the TAA but indicated that adjusting taxes involves multiple agencies, including the Energy Ministry and the National Energy Policy Committee. As an alternative, he suggested the airlines explore current governmental support mechanisms currently being implemented to revitalize the country’s tourism industry.



The discussions also addressed public concerns about the high cost of domestic air travel. The Finance Ministry has invited the TAA to illustrate how a reduction in the jet fuel excise tax, set at a price average from 2017 of 4.73 baht per liter, might lead to lower travel expenses for consumers. Clearly demonstrating this link could support the case for government consideration of the tax reduction.

Although a temporary reduction in excise duty on jet fuel for domestic flights to 0.20 baht per liter was in effect from April 2020 to June 2023, the TAA claimed that further tax cuts are necessary to alleviate ongoing financial difficulties in the aviation sector and ensure its recovery. (NNT)