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No fuel tax cut for Oil Fund, says Finance Ministry


The Finance Ministry confirmed on Monday that it will not cut fuel tax, pointing out that this would be the government’s last measure in maintaining fuel prices.

Earlier, the Energy Policy and Planning Office had proposed that the fuel tax be cut to reduce pressure on the Oil Fund.

No fuel tax cut for Oil Fund, says Finance Ministry

Finance Minister Arkhom Termpittayapaisith said the ministry will monitor the global price of oil, especially the Dubai price, to see if it rises to a point where it is unbearable.

“The government cut fuel tax when the global prices hit US$100 per barrel," he said.

He expects the price of oil to drop after winter as the US will start using up its oil stocks once the price of oil rises.

He added that Middle East countries were planning to boost the production of oil last week, but failed to do so due to technical issues.

“The government will use the Oil Fund’s mechanisms to maintain the price of fuel in the country,” he said.

He also confirmed that the Oil Fund has plenty of liquidity as it has 10 billion baht in circulation and the government has loaned it another 20 billion baht to maintain fuel prices.

Arkhom added that the National EV Policy Committee is currently considering measures like cutting EV import and excise tax to promote the use of electric vehicles in the country.

"However, the benefits will come with conditions, such as EV manufacturers must set up production facilities in Thailand,” he said. "Meanwhile, the government will take care of automakers in the country during the transition as well.”

Arkhom also confirmed that the ministry will continue collecting tax from cryptocurrency transactions.

"The Revenue Department must clarify details on taxing cryptocurrency transactions as the trading volume was high last year,” he said.

"The department is planning to collect tax from stock trading as well.”

Published : January 25, 2022

By : THE NATION