Thailand to Introduce Carbon Tax by Year-End
The Thai government will implement a carbon tax within this year to incentivize businesses to reduce carbon emissions without burdening the public, says Deputy Finance Minister Paopoom Rojanasakul. The existing 6 baht per litre excise tax on fuel will be split into 5 baht as excise tax and 1 baht as carbon tax, affecting oil companies based on their emission management. Thailand aims to meet international commitments of reducing emissions by 30-40% by 2030, achieving carbon neutrality by 2050, and reaching net zero emissions by 2065.
The Thai government is set to implement a carbon tax within this year, announced Deputy Finance Minister Paopoom Rojanasakul at the 'Road to Net Zero 2024: The Extraordinary Green' event.
The carbon tax aims to incentivize businesses to reduce carbon emissions without burdening the public.
Mr. Paopoom explained that while the excise tax rate for fuel oil will remain at 6 baht per litre, it will be split into 5 baht as excise tax and 1 baht as carbon tax.
The new tax structure maintains the existing tax burden for fuel users but will vary for oil companies based on their carbon emission management.
Businesses significantly reducing emissions could potentially receive tax refunds.
Mr. Paopoom stressed Thailand's international commitments, including a 30-40% emission reduction by 2030, achieving carbon neutrality by 2050, and hitting net zero emissions by 2065.
The carbon tax aims to incentivize businesses to reduce carbon emissions without burdening the public.
Mr. Paopoom explained that while the excise tax rate for fuel oil will remain at 6 baht per litre, it will be split into 5 baht as excise tax and 1 baht as carbon tax.
The new tax structure maintains the existing tax burden for fuel users but will vary for oil companies based on their carbon emission management.
Businesses significantly reducing emissions could potentially receive tax refunds.
Mr. Paopoom stressed Thailand's international commitments, including a 30-40% emission reduction by 2030, achieving carbon neutrality by 2050, and hitting net zero emissions by 2065.
