Carbon tax implementation in the offing
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Carbon tax implementation in the offing

Council of State now reviewing regulation

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A pickup truck belches thick, black smoke from its exhaust. While authorities say they are clamping down on offending vehicles to try to combat the recent surge in PM2.5 particles, the new carbon tax is scheduled to commence later this month.
A pickup truck belches thick, black smoke from its exhaust. While authorities say they are clamping down on offending vehicles to try to combat the recent surge in PM2.5 particles, the new carbon tax is scheduled to commence later this month.

Thailand is set to implement a carbon tax this month as part of its efforts to reduce greenhouse gas emissions and promote environmental sustainability.

Speaking after the signing of a cooperation agreement to promote awareness of the carbon tax and sustainable energy consumption with PTT Plc and Bangchak Corporation Plc on Monday, Deputy Finance Minister Paopoom Rojanasakul said the ministerial regulation on carbon tax, which was approved by the cabinet two weeks ago, is currently under review by the Council of State.

This tax will be embedded within the oil tax structure without affecting consumers, and the measure has gained international recognition, particularly from the European Union.

According to Mr Paopoom, the calculation of the carbon tax will be based on a rate of 200 baht per tonne of carbon dioxide equivalent, multiplied by the emission factor for each type of oil. If oil producers can reduce emissions below the specified threshold, the carbon tax will also be lowered accordingly.

Additionally, Mr Paopoom said the Excise Department is collaborating with the Faculty of Economics at Chulalongkorn University, PTT Oil and Retail Business Plc (OR), and Bangchak Corporation to drive and support awareness of the carbon tax and energy consumption across multiple dimensions, aiming to shift energy use towards a low-carbon society.

OR will provide operational and resource support as agreed upon by the three parties. This includes displaying the amount of greenhouse gas reduction for consumers during each fuel refill on screens at PTT Stations.

This initiative aligns with OR's Sustainable Development Goals (SDG) policy, which aims to create balance in all dimensions, particularly the "G: Green" aspect, focusing on fostering opportunities for a cleaner society and supporting a low-carbon future.

When it comes to Bangchak, members of the Bangchak Green Miles programme will see their greenhouse gas reduction displayed as an equivalent number of trees planted under the "Your Tree" campaign.

This data will be recorded through the Bangchak mobile application, allowing consumers to connect their eco-friendly fuel usage with environmental conservation. The campaign will begin communications on March 1.

With every fuel refill, consumers will be informed about the amount of carbon dioxide (CO2) emissions generated from the fuel they purchase, encouraging behavioural changes to reduce CO2 emissions, said Mr Paopoom.

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