Finance Ministry eyes carbon tax to back Thailand’s net-zero ambition
The tax aims to promote fairness among manufacturers and encourage the production of low-carbon products without increasing consumer prices
The Finance Ministry is planning to implement a carbon tax this year in line with Thailand’s green economy strategy, Deputy Finance Minister Paopoom Rojanasakul said.
He was speaking at the “Road to Net Zero 2024: The Extraordinary Green” forum held on Thursday at Renaissance Bangkok Ratchaprasong Hotel. The event was organised by Nation Group’s media arm, Thansettakij.
Paopoom said the ministry is finalising details of the carbon tax to propose to the Cabinet for approval, so it can be enforced within this year. “Thailand must progress towards a green economy to ensure sustainability in both life and the economy,” he said.
The minister explained that the carbon tax aims to ensure fairness among manufacturers, as everyone contributes to greenhouse gas emissions that impact the environment. However, he said, these taxes will not make things more expensive, as the ministry plans to adjust the excise tax structure.
“The carbon tax will encourage manufacturers to produce low-carbon products, thus reducing tax expenses and enhancing competitiveness in the global market,” he added.
Paopoom noted that the Excise Department was considering a tax incentive on batteries, to encourage manufacturers to produce more eco-friendly items. He reckons these measures will encourage EV manufacturers to set up their production base in Thailand, which would further benefit the country’s environment.
Additionally, he said, the Finance Ministry is working on providing low-interest loans to support the development of green industries. The Export-Import Bank of Thailand plays a crucial role in this initiative, with a green portfolio exceeding 70 billion baht, which is expected to hit 100 billion baht soon.
The Thai Credit Guarantee Corporation has been tasked with offering loan guarantees for small and medium enterprises, as well as entrepreneurs focused on the green transition, he said.
Furthermore, he said, the Government Savings Bank and SME Development Bank are providing loans to help private firms with their green transition.
