The Cabinet has approved a proposed excise tax reduction for diesel for three months, effectively halving the rate from 5.99 baht to 3 baht per liter to help alleviate the fuel price crisis.
This lowered excise tax rate will help bring down the retail price of diesel at petrol stations. The government hopes this measure will bring down the pricing of other commodities and consumer products, and alleviate the financial constraints caused by the fuel price crisis.
At the previous rate, the Excise Department generated around 12 billion baht monthly from diesel excise tax, or around 144 billion baht each year. The rate is calculated based on the average diesel consumption at some 2 billion liters each month.
The Ministry of Finance now expects this temporary tax reduction to cut its revenue down by 5.7 billion baht a month for the next three months. However, the decision is expected to benefit the manufacturing industry, the tourism industry, and the agricultural sector, particularly the farmers.
Information and Source
Reporter : Tanakorn Sangiam
Rewriter: Thammarat Thadaphrom
National News Bureau: http://thainews.prd.go.th
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