A decision has yet to be reached on whether to extend the diesel tax measure set to expire on July 20, with the government recently directing the Ministry of Finance to evaluate the feasibility of such an extension.
According to Ekniti Nitithanprapas, Director-General of the Excise Department, the situation is being closely monitored and various factors are being taken into consideration, including economic trends and global oil prices.
Additionally, the department’s legal team is currently examining if renewal of the tax measure would be in conflict with the 2017 Constitution, as there has been no previous case of this kind.
Ekniti noted that the stabilization of oil prices can be managed through various mechanisms other than reducing the excise tax. These include decreasing contributions to the fuel fund, empowering the Ministry of Finance to guarantee debt repayments to the fund, and the borrowing activities of the fuel fund office, among others.
There have nevertheless been recommendations against renewing the tax in favor of letting diesel prices float, given the recovering state of the Thai economy and subsiding global oil market trends. These recommendations have been acknowledged and will be considered along with other factors. (NNT)
