The Cabinet has extended a 5 baht per liter diesel excise relief for an additional four months (Jan 21 – May 20).
Deputy Finance Minister Santi Promphat announced the decision following a Cabinet meeting this week, stating that the measure is aimed at reducing cost of living expenses and preventing an increase in consumer product prices.
The latest round of the diesel excise cut is expected to cost the Excise Department around 40 billion baht in lost revenue, or roughly 10 billion baht per month. This is the sixth time the relief has been extended since February 2020, resulting in an estimated loss of 140-150 billion baht in diesel excise revenue for the government.
Santi assured, however, that the cut would not impact the government’s financial situation, as it had received an extra 33 billion baht in income from the auction of mobile phone and radio bandwidths, as well as tax fines on imported goods.
He added that revenue received by the Ministry of Finance during the first two months of the 2023 fiscal year was 55 billion baht higher than the target, and that the ministry was optimistic of making another 2.6 trillion baht in revenue by September.
According to the deputy minister, the government also plans to borrow 695 billion baht to offset its budget deficit, with projected spending at 3.1 trillion. At the end of the fiscal year, a cash balance of 710 billion baht is expected for the treasury, thereby keeping the government’s financial status stable and unaffected by the excise cut. (NNT)
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