The cabinet on Tuesday approved a 90% reduction in the annual vehicle tax for taxis, motorcycle taxis and tuk-tuks.
Prime Minister Prayut Chan-o-cha announced the cut after the weekly cabinet meeting.
He said the annual vehicle tax for the fiscal year Oct 1 to Sept 30 next year would be reduced by 90% for cabs, tuk-tuk taxis and motorcycle taxis. This would help them recover from the impact of Covid-19 and high fuel prices.
The resolution would result in the tax going down from 685 baht to 68.50 baht for cabs and from 185 to 18.50 baht for tuk-tuk taxis, he said.
There were about 270,000 cabs, tuk-tuk taxis and motorcycle taxis registered in the country, the prime minister said.
The government had previously helped taxi drivers by handing out a cost-of-living allowance of 5,000 baht to 16,694 drivers aged over 65 years. The government would gradually introduce assistance to groups of needy people, Gen Prayut said.