Cabinet hikes diesel oil tax cut for two more months
The Cabinet on Tuesday approved a deeper cut in excise tax on diesel from THB3 to THB5 per litre for two more months, the government spokesman said.
The Cabinet deliberated on the diesel excise cut proposal at its weekly Cabinet meeting, as the current THB3 cut is due to expire on May 20.
Government Spokesman Thanakorn Wangboonkongchana said the Finance Ministry had proposed two options to the Cabinet.
The first option urged the Cabinet to extend the THB3 per litre cut for three more months.
The second option urged the Cabinet to increase the cut to THB5 per litre, but for just two more months.
The Finance Ministry has projected that the subsidy would cost the government not more than THB20 billion in projected revenue. If the government loses more than THB20 billion in excise revenue, it could affect its revenue target, the ministry explained to the Cabinet.
The government is using excise cut to try to stabilise the retail price of diesel, so that people would not be affected by the rising cost of transportation, which could inflate manufacturing costs.
An academic, Praipol Kumsup, welcomed the extension of the excise cut, saying it would mitigate the impact of rising energy prices on the people.