Excise department backs bioethylene production
PTT Plc and SCG Group have expressed an interest in producing bioethylene from ethanol, and will be offered tax privileges to promote the manufacturing of bioplastics that help reduce environmental impacts, the Excise Department said on Thursday.
The manufacture of bioethylene, an ingredient used for producing bioplastics or biodegradable plastics, produces 80% less carbon dioxide than the production of regular ethylene from hydrocarbons.
“Currently ethanol is taxed at 80 baht per litre, but the department is considering waiving the tax for any manufacturers who use it for bioethylene production,” said Kriangkrai Pattanaporn, deputy director-general and spokesman of the Excise Department.
“We believe that in the future more manufacturers will enter the bioethylene manufacturing business to cater to the global trend of using eco-friendly plastic products and reducing polluting emissions,” he added.
Kriangkrai said the tax measure is in line with the government policy to promote corporations that operate under the environmental, social and governance (ESG) framework or adopt the bio, circular, green economy (BCG) model.
Eligibility for tax exemption will depend on a new department rule that sugarcane and tapioca used in the manufacturing of ethanol must not come from plantations where farmers burn their leftover crops after harvest.
Although crop burning is against the law as it creates air pollution and is a public nuisance, many farmers continue the practice to save time and labour costs on soil preparation for the next harvest.
The department is finalising the details of ethanol tax exemption for bioethylene manufacturing and will present it to the new cabinet for approval, Kriangkrai said.
Thailand currently has 28 factories that manufacture ethanol from sugarcane and tapioca, with a combined capacity of 28 billion litres per year. Domestic demand for mixing this ethanol with fuel stands at some 15 billion litres per year, therefore the rest can be used for bioethylene manufacturing, which will support the production of bioplastics for domestic use and exports.
