Extension of excise tax cut okayed

Extension of excise tax cut okayed

Measure extended by 2 months to Sept 20

Diesel subsidies have been implemented as the government monitors volatile energy prices in the global market. (Photo: Varuth Hirunyatheb)
Diesel subsidies have been implemented as the government monitors volatile energy prices in the global market. (Photo: Varuth Hirunyatheb)

The cabinet on Tuesday approved extending the reduction of excise tax on diesel by 5 baht per litre for another two months from July 21 to Sept 20 to mitigate the impact of high energy prices.

According to government spokesman Thanakorn Wangboonkongchana, the extension of the excise tax is just a short-term measure to help alleviate the cost of living for people and businesses now that global oil prices remain relatively high.

In May, the cabinet approved a further cut in the excise tax on diesel by 5 baht per litre for two months or until July 20.

The cut came after the government decided in February to reduce the excise tax by 3 baht per litre, down from 5.99 baht, from Feb 18 to May 20.

The diesel tax reduction is expected to cost the government about 20 billion baht in lost revenue, said Mr Thanakorn.

The reduction in the diesel excise tax by 1 baht a litre is estimated to cost the government around 1.9 billion baht a month.

Finance Minister Arkhom Termpittayapaisith said earlier this month that if the country's revenue this year exceeded the target, the surplus could be used to extend the diesel excise curb.

Whether the reduction will continue depends on the country's revenue. Thailand aims to earn a total of 2.4 trillion baht this year, he said.

Mr Arkhom said that in the first five months of this year, revenue collection surpassed targets.

This was due to effective collection measures stemming from the availability of electronic tax payment channels and the increased taxing of e-services offered by foreign-based platforms.

Diesel subsidies have been implemented from time to time as the government monitors volatile energy prices in the global market.

The reductions must reflect the rise and fall of energy prices.

In a related development, the cabinet on Tuesday endorsed tax measures to stimulate tourism and related industries as well as promote employment in the tourism and related industries.

The tax perks, aimed to attract companies to organise seminars in the provinces, include a two-time corporate tax deduction for companies holding seminars in second-tier tourism provinces and a 1.5-time corporate tax deduction for those organising seminars in key tourism provinces.

Companies that organise exhibitions and trade fairs in the provinces are also eligible for the two-time corporate tax deduction perks.

The measures take effect from July 15 to Dec 31, with the government projected to lose about 455 million baht worth of revenue from the tax breaks.


Do you like the content of this article?
COMMENT (3)

Stimulus plan revived as Prayut returns

The Tourism and Sports Ministry is pushing ahead with its proposals for a 1-billion-baht stimulus project and a 4am closing time for entertainment venues as Prime Minister Prayut Chan-o-cha returns to office.

06:00

Gold bounces back on weak dollar, US economic data

Gold prices rebounded sharply to pass US$1,700 an ounce as the US dollar weakened and recently released US economic data were worse than expected.

05:55

TAT banking on e-visas

With Malaysian tourists becoming the first source market to reach 1 million and reopening of more countries in sight, Thai tourism could realise an even stronger rebound among the Asian market if e-visas are adopted and international flights resume, according to the Tourism Authority of Thailand (TAT).

05:55