The government has announced its intention to implement a carbon tax by 2025 as part of its efforts to address climate change and promote sustainable practices. Excise Department Director-General Ekniti Nitithanprapas said the implementation will be based on global best practices and international standards for the carbon tax.
According to Ekniti, the carbon tax will be levied on emissions at the source, starting with oil products, and will be set at a rate of 200 baht per metric tonne. Thailand will be the second ASEAN country after Singapore to implement a carbon tax, underscoring its commitment to environmental protection and sustainable development.
The carbon tax will be incorporated into the existing oil tax structure, ensuring a revenue-neutral transition. The Excise Department reiterated that the carbon tax will serve as a catalyst for reducing carbon emissions and promoting environmentally responsible practices. To support this, the government has implemented measures to encourage the growth of electric vehicles (EVs), with EV sales experiencing a significant 685% increase in 2024.
The department is also exploring the differentiation of battery tax rates, with plans to reduce the tax rate for recycling, seeking to incentivize businesses to adopt eco-friendly practices and contribute to a circular economy. (NNT)
