The Finance Ministry is expected to announce reduction in the excise tax on diesel by three baht per liter which should take effect on Feb 18.
The cabinet approved the tax cut for three months or until May 20. The Finance Ministry will then announce the tax reduction which is likely to be published in the Royal Gazette on Feb 17 and take effect on Feb 18.
At present the Excise Department charges the excise tax on diesel at 5.99 baht per liter generating state income of about 12 billion baht a month or 144 billion baht a year based on the consumption of about 2 billion liters of diesel per month. The tax cut will cost the state’s revenue loss by 5.7 billion baht monthly or about 17.1 billion baht in three months but will support national economy.
Thongyoo Khongkhan, president of the Land Transport Federation of Thailand, who had called for the tax reduction said the cabinet’s resolution on the tax cut satisfied truck operators at a certain extent but the government solved parts of problems without addressing the energy price structure.
Solutions to structural problems of energy prices were among the seven demands from the federation and they included reduction in oil prices at refineries and lower marketing margins, he said. (TNA)