Excise taxes maintained

 He noted that the adjustment is unnecessary as markets are volatile. He said the government would closely monitor the market for at least 2-3 months. However, if crude oil plunges to US$70-$80 a barrel in the near future, the ministry may review the excise tax.

 "Though oil prices are falling, but all must still cut consumption as volatility remains," he said. 

 The Excise Department expects to lose Bt32 billion during August to January 2009 due to the government's measure to cut diesel and gasohol excise taxes. While gasohol taxes are cut by over Bt3 per litre, that for diesel is slashed Bt2.30 per litre.

 Deputy Finance Minister Pichai Naripthaphan who oversees the department said that the excise taxes should be raised as Thailand now spends over Bt1 trillion on energy imports per annum. 

 "Since global prices fall, leading to cuts in retail oil prices, traffic is getting jammed again," he said, adding that the excise taxes could be raised in steps.

 He has also instructed the department to complete the tax structure on E85 gasohol. He said he would seek discussion with Surapong over the planned cut in import tariffs for auto equipment, which would allow old cars to use E85.

 The department should also expand the excise tax on luxury goods, in line with the sufficiency philosophy.