Macroeconomics/Oil excise tax

Chatrudee Theparat

Oil excise tax cut is extended for a further period of four months.

The cabinet approved to extend the excise tax cut scheme of diesel by 5 baht per litre for four months.

Prime Minister Prayut Chan-o-cha said the cabinet yesterday approved it and will take effective from this January 21 to May 20.

“The tax cut will cost 10 billion baht a month or about 40 billion baht. It has helped people and industries get less impact from the hike of oil price, although the Oil Fuel Fund is stays in the red.”

Oil Fuel Fund contracted by 116 billion baht as of January 15. The situation led the government to lose its revenue of total 138 billion baht since the cut in excise diesel oil from February 2022.

Danucha Pichayanan, Secretary General to the National Economic and Social Development Council, projected oil price is likely to move to a higher rate following a recovery of the global economy and the reopening of China’s economy. But the prolonged war in Europe is one of the major concerns.

He said the hike of oil price may send an impact on the cost of living and the recovery of Thai economy.