Excise takes into account the carbon tax

0

Lavaron said the department’s concept of a tax on carbon emissions on the industrial sector would increase the tax as emissions increase.

The excise department is conducting a study on a plan to levy a tax on carbon emissions in the industrial sector, aimed at promoting environmental protection in Thailand, said managing director Lavaron Sangsnit.

He said such a tax is in line with the downward trend in revenue from excise taxes on fossil fuels as more people switch to electric vehicles (EVs).

Thailand is aiming for electric vehicles to account for 30% of total car production by 2025, suggesting the possible decline in the use of fossil-fueled vehicles.

The main source of revenue for the department is the excise tax on petroleum, which accounts for 40% of its total revenue of around 600 billion baht per year.

Mr Lavaron said the department’s concept of a tax on carbon emissions on the industrial sector would increase the tax as emissions increase.

An excise tax on electric vehicles is still under consideration by the ministry, he said.

The current structure of the excise tax on vehicles is based on engine power and carbon dioxide (CO2) emission rates.

For example, a passenger car is subject to a 30% tax if its CO2 emissions are equal to or less than 100 grams per kilometer.

A 40% tax is applied if CO2 emissions exceed 200g per km.

Mr Lavaron said the excise tax rate applied to electric vehicles may be the lowest because electric vehicles barely emit CO2.

A source from the department who requested anonymity said Thailand is an attractive market for foreign electric vehicle investors, thanks to the country’s huge auto market.

However, Indonesia can also attract investment in electric vehicles because it has rare earth elements, which are key materials for the production of electric vehicle batteries.

Share.

Leave A Reply