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After two-hour debate, the Senate rejected the decree on revised the excise tax law on grounds that the higher tax would push up the costs of commodities too much.

A total of 58 senators voted against the plan to issue an executive decree to amend the 1984 excise tax law; 33 senators supported the measure and 11 abstained.

During the debate, the Senate voiced concerns over the higher financial burden on the public, which could weigh down the economic expansion which is the government's main policy.

Most senators voting against the measure cited the negative effects from the proposed amendment, especially regarding the oil excise tax  that it  would push up goods prices while people will have to shoulder the rising costs and it would hinder the country's economic growth.

The decree would allow the government to raise the fuel excise tax ceiling from Bt5 to Bt10 per litre. It was designed to help raise the government revenue as well as reduce fuel consumption, as 90 per cent of energy consumed domestically is imported.

Senate Speaker Prasopsuk Boondej, who chaired the meeting, later told journalists that the Senate decision not to approve the government's executive decree to amend the excise tax law should not be considered as "slapping the government's face."

Prasopsuk said the Senate believed that the revision would negatively affect the people.

If the government insists on amending the excise tax law, it could present a draft law for consideration by the House of Representatives, he said. If approved by a majority in the House, it could become a law automatically without sending it to the Senate for approval.

The government earlier raised excise taxes on cigarettes and alcoholic drinks.