Thailand approves tax cut on diesel to ease high prices
Thailand's cabinet on Tuesday agreed to cut the excise tax on diesel by 3 baht ($0.0928) per liter for three months, from 5.99 baht currently, to help mitigate the impact of high energy prices.
The tax cut will reduce revenue by 17 B baht ($526 MM), but that should be partially offset by a rise in other tax revenue as the economy is recovering, Finance Minister Arkhom Termpittayapaisith told a news conference.
"The tax is necessary as the government has extended the cap of diesel prices at 30 baht per liter until the end of May," he said.
But the country's oil fund, which stabilizes domestic prices, is still unable to borrow 30 B baht as earlier approved by the cabinet, Arkhom said.
The tax cut will give the energy ministry flexibility in keeping retail fuel prices not exceeding 30 baht per liter, said deputy finance minister Santi Promphat.
(Reporting by Kitiphong Thaichareon Writing by Orathai Sriring Editing by Ed Davies, Martin Petty)
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