Thailand considering diesel tax cut extension despite easing fuel crisis
The Finance Ministry is considering whether to extend the excise tax cut of 5 baht per litre of diesel, which is due to expire on January 20. The tax cut was originally imposed last year to suppress soaring pump prices during the fuel crisis, which has now eased. However, the ministry said it was still monitoring the price of fuel in the world market closely.
"Even though the global fuel price has dropped, we have to look at the Singapore market diesel price," said Finance Minister Arkhom Termpittayapaisith.
He added that the public debt management policy committee, which he chairs, has approved increasing the Oil Fuel Fund’s loan guarantee limit to 110 billion baht, which will be put to Cabinet. He said the move would raise the ratio of public debt to GDP this year from 60.43% to 61.42%, well below the ministry’s fiscal limit of 70%.
Arkhom said it would not be necessary to lift the loan limit to the maximum 150-billion-baht set by Cabinet resolution as the global fuel price crisis is easing and the Oil Fuel Fund is now able to generate revenue.
He added that this year's budget deficit will remain at 695 billion baht or 3.7% of GDP amid economic recovery and the Finance Ministry’s plans to generate revenue.
Fiscal Policy Office director-general Pornchai Thiraveja said the government generated net revenue of 424.73 billion baht in the first two months of fiscal year 2023 (October to November 2022), exceeding its target by 55.41 billion baht.
