Excise Department looking at overseas practices before levying carbon tax
The Excise Department is studying guidelines issued by many countries for collection of carbon tax, with the study expected to be completed this year.
The department's director-general, Ekniti Nitithanprapas, said on Wednesday that Singapore has two types of carbon tax collection — on goods, and on production.
European countries have implemented measures to collect carbon tax on production, both domestic and overseas, he added.
He pointed out that carbon tax collection on goods that emit carbon dioxide is appropriate for Thailand as the country collects tax from retail prices.
"Initially, Thailand would collect carbon tax on goods that are subject to excise tariff, such as diesel, benzene and biodiesel," he said.
He said collection of carbon tax on production would take some time as the department needs to study the guidelines.
"We have to check how much carbon dioxide is emitted during the production process," he said, adding that the department has set up a working team and summoned related agencies to discuss this issue.
Ekniti explained that Singapore, for instance, collects 5 Singapore dollars per metric ton of carbon dioxide emitted during production.
He added that European countries' move to collect carbox tax on production overseas aims to prevent business operators from taking advantage by moving their production base.
"Guidelines to collect carbon tax on goods that are subject to excise tariff will be made by paying attention to environment," he said.
He added that the department would also launch guidelines to reduce carbon tax on eco-friendly products.
"Apart from driving the economy, the department’s campaign will urge people to use more energy-saving products," he said.
Ekniti said that the department plans to reduce tax on electric vehicle (EV) batteries for domestic manufacturers from the current 8 per cent in a bid to meet the government's campaign to promote the use of EVs in the country.
He added that the department is discussing this issue with related agencies, expecting to reach a conclusion by this year.
"However, manufacturers must have a plan to recycle batteries," he said, adding that this move would also help reduce the price of EVs.
Related stories:
