The Excise Department plans to study tax measures to support the production of bioplastics, bio jet fuel and environmentally friendly batteries, says director-general Ekniti Nitithanprapas.
He said the department is emphasising the importance of the environmental, social and governance (ESG) model to drive economic expansion via tax measures that support ESG practices.
In fiscal 2023, beginning on Oct 1 this year, the department plans to begin its study on how to use tax measures to promote the production of bioplastics, bio jet fuel and recyclable batteries for electric vehicles (EVs), Mr Ekniti said.
The department will also consider reducing the tax on ethanol if it is used for the production of bioplastics or bio jet fuel in an effort to promote environmental protection, he said.
In the future, the department might lower the excise tax on recyclable EV batteries to 2%, said Mr Ekniti. Currently it imposes the same flat rate of 8% on conventional and EV batteries.
The Finance Ministry set the revenue target for the Excise Department for fiscal 2023 at 567 billion baht, 67 billion higher by the previous fiscal year.
Mr Ekniti said the department will also support non-alcoholic liquor and beers by charging a lower levy than for alcoholic drinks, though the rate will be higher than for regular beverages such as soda. Younger people enjoy non-alcoholic beer, he said.
Mr Ekniti said the department faces challenges in trying to raise excise revenue, ranging from the impact of the ongoing Russia-Ukraine war to rising energy prices and Thailand becoming an ageing society.