The Finance Ministry is unlikely to extend the duration of the jet fuel excise tax reduction after providing a tax break during the pandemic, according to Deputy Finance Minister Julapun Amornvivat.
Speaking about proposals to the ministry to reduce the jet fuel excise tax put forth by a group of budget carriers, Mr Julapun said they were not pressing issues.
He said the principles guiding tax measures to support any particular business require careful consideration of whether the public truly needs such measures and whether any other alternatives are available.
Airlines are one of many options when it comes to travel, and while a significant number of people fly, some travellers use other modes of transport, said Mr Julapun.
However, he said the ministry is not abandoning the airline industry, which is considered a key mechanism to drive tourism.
"The government has gradually raised the target for foreign tourists, now aiming for 36.7 million this year, with the total expected to exceed this number," said Mr Julapun.
"Higher tourism revenue partially flows to the airline industry, and based on initial reports we've learned airlines that suffered heavy losses during the pandemic have now returned to a positive condition."
He encouraged domestic airlines to lower airfares and increase flight frequencies to underserved areas, regardless of whether the government extends the jet fuel excise tax cut.
"There have been discussions in the past about domestic airfares, which are much more expensive than those to neighbouring countries," Mr Julapun said.
The jet fuel excise tax rate is currently 4.726 baht per litre. During the pandemic and subsequent lockdowns, the lack of passenger demand led the government to reduce the aviation fuel excise tax to 0.20 baht per litre between April 10, 2020 and April 30, 2023.