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Govt holds excise tax hikes on fuel products/cigarettes

By Wichit Chaitrong
The Nation

The Cabinet has delayed the decision to raise the excise tax on all fuel products, according to an informed source from the Finance Ministry.

However, the source said that excise taxes on cigarettes and fuel products would be the next to be raised, after the taxes on beer and liquor.

It was proposed that the excise tax on all fuel products would be raised Bt2 per litre.

Energy Minister Wannarat Charn-nukul called for an urgent meeting with members of the National Energy Policy Committee on Wednesday afternoon, seeking their consensus to reduce the contribution to the Oil Fund to alleviate the public burden.

He said the tax hike on fuel products were not on the meeting agenda. However, the meeting would set preparation if the Cabinet approved the hike.

The Finance Ministry proposed the Bt2 per litre increase in excise taxes of all fuel products. Without the cut in the contribution to the Oil Fund, the retail prices of all products would be Bt2 higher pre litre.

The NEPC's consensus would be tabled at the meeting of the National Energy Policy Council meeting. Slated for later today, the National Energy Policy Council meeting will be chaired by Prime Minister Abhisit Vejjajiva.

The hike of excise tax on fuel is part of the government's plan to revise several excise tax on many items which are expected to generate incomes for the government by totaling Bt70 billion over the next 12 months.

Earlier today, the Cabinet approved an increase of excise tax on cigarette, liquor, and beer by Bt3-5 each which would generate incomes for the government by Bt6.3 billion.

Govt holds excise tax hikes on fuel products/cigarettes

The Cabinet has delayed the decision to raise the excise tax on all fuel products, according to an informed source from the Finance Ministry.

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