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Thai cabinet extends diesel tax reduction for 2 months

The cabinet decided to extend the diesel tax break for two more months and the power bill subsidies until December in order to combat rising energy prices. They argued that practicing energy conservation today is the most crucial thing. If Thai people cut their consumption by between 10% and 20%, the entire country would benefit. Mr. Anucha claims that the cabinet resolved to keep the excise duty on diesel and bunker oil eliminated. The government has spent almost 200 billion baht on power subsidies, compressed natural gas, LPG (cooking gas), and diesel. Losses in state funding as a result of reductions in the gasoline excise tax are not included in the cost of subsidies.

According to government spokesman Anucha Burapachaisri, extending the measures will help people cope with increased living costs as well as the price of goods and services. The policy will cost the government 20 billion baht, according to Mr. Anucha. Mr. Anucha claims that the cabinet also approved a 300 million baht subsidy for cooking gas for the months of October through December. From September 16, 2022, until March 15, 2023, the tax-free power price reduction scheme will be in effect. In September through December, the Energy Regulatory Commission allowed an increase in power costs, from 4 to 4.72 baht per unit. 89% of all residential electricity consumers fall into one of the two categories mentioned. The subsidies for electricity bills costs the government 9.13 billion baht. The cabinet also approved lower monthly electricity costs for two vulnerable groups: those who use 300 or fewer units and those who use 301 to 500 units, according to Energy Minister Supattanapong Punmeechaow. The government would keep its excise tax reduction of 5 Baht per litre for retail fuel prices from September 21 to November 20, 2022. The three baht tax reduction announced in February would end on September 20. For the first group, the higher Ft per unit of power utilized from this month through December will be subtracted by 92.04 satang. The second group would receive a discount ranging from 15% to 75% for the same time frame.

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