Excise tax cuts on fuel to cost 17.7 billion baht
The government’s policy to cut the excise tax on several fuels in a bid to reduce people’s financial burden is estimated to result in a loss of state revenue of 17.7 billion baht, the Excise Department said on Tuesday.
The Cabinet has approved a move to reduce excise tax for benzene and gasohol (petrol combined with ethanol) fuels by 1 baht from November 7 for three months.
However, gasohol 91 will take a 2.50 baht cut, as it gets an additional 1.50 baht subsidy from the Oil Fuel Fund.
The department estimated that the measure would cost the government 900 million baht per month in state revenue, or 2.7 billion baht in total.
Earlier in September, the Cabinet approved a 2.5 baht cut on excise tax of diesel and biodiesel fuels for three months, effective from September 20 to December 31.
This measure is expected to result in reduced state revenue of 5 billion baht per month, or 15 billion baht over the period, the department noted.
Combined revenue lost from the fuel tax cuts could therefore reach as much as 17.7 billion baht.
In its two months at the helm, the Pheu Thai-led coalition government has pushed several policies promised during the May election, most of which are aimed at reducing the cost of living, which has soared in the post-Covid era.
Policies already implemented include the capping the fare of the electric train at 20 baht on selected routes, while those still in the pipeline are raising the minimum wage to 400 baht per day (planned to take effect on January 1) and the 10,000 baht digital money handout (planned for April or May), the latter being Pheu Thai’s main economic policy.
