The cabinet resolved to cut the excise tax on diesel by five baht per liter for two months from May 21 to July 20 to relieve the financial burdens of people and businesses.
Finance Minister Arkhom Termpittayapaisith said that the government had decided to reduce the tax by three baht per liter from Feb 18 to May 20.
As the Russia-Ukraine conflict was raising global crude prices and weak baht affected the costs of fuel imports, there were widespread negative impacts on people and the business sector because diesel was the cost of manufacturing in all industries, he said.
To cushion the impacts, the cabinet resolved to cut the excise tax on diesel further by five baht per liter, the finance minister said.
The tax reduction would cost the state about 20 billion baht in revenue, he said. (TNA)