Diesel desires: Government plans 2-baht tax minimize to fuel price drop below 30 baht per litre

The Excise Department is preparing a proposal to reduce diesel tax by 2 baht per litre and aiming to lower the retail value of diesel to lower than 30 baht per litre in accordance with the newly fashioned government.
The proposal is in the pipeline following Prime Minister Srettha Thavisin’s announcement to slash the retail worth of diesel to 30 baht per litre from the current cap of 32 baht per litre. The Excise Department is currently making ready information on diesel tax reduction to present to the Ministry of Finance and the prime minister.
Initial discussions point out a proposal to cut back the diesel tax by 2 baht per litre from the current 6 baht per litre, in accordance with government coverage. However, this will require consultation with the Ministry of Energy and the Oil Fuel Fund Office relating to the applying of the reduced tax, such as whether it might be used to reduce back the retail price of gasoline for the general public or to offset the burden on the Oil Fund.
Astonishing that a discount of 1 baht in diesel tax per litre would impact its month-to-month tax income by 2,000 million baht. If the tax is lowered by 2 baht per litre, the revenue loss would amount to four,000 million baht per month.
According to the department, the rate is acceptable and fewer than the earlier government’s diesel tax reduction of 5 baht per litre. The period of the discount continues to be topic to policy dialogue.
The earlier authorities had approved the extension of diesel tax discount as much as seven times, resulting in a total tax lack of greater than 158 billion baht.
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