News

Thailand’s cabinet approves a carbon tax rate of 200 baht ($5.88) per ton of carbon emissions. Deputy Finance Minister Paopoom Rojanasakul stated in an official announcement that the carbon tax will be integrated into the existing petroleum tax structure.

The de facto leader of the ruling Pheu Thai Party, former Prime Minister Thaksin Shinawatra, recently raised the topic of lowering electricity rates, sparking widespread discussion. Most of the proposals are related to renewable energy.

As the new year begins, Thailand's newly adopted electricity prices remain high, averaging 4.15 Thai Baht per kilowatt-hour (about USD 0.12). Although this marks a slight reduction compared to 2024, the price remains above 4 Baht.

Recently, Thailand amended tax laws to encourage mangrove restoration, with plans to exempt land taxes on green area, such as mangrove forests, starting in 2025.

To expand the development of electric vehicles (EVs), the Thai government has passed a new tax system aimed at hybrid electric vehicles (HEVs) and mild hybrid electric vehicles (MHEVs), offering conditional excise tax reductions for manufacturers.

To achieve its carbon reduction targets, Thailand is formulating five major energy plans with a total investment of 2.9 trillion baht (about 93 billion USD). Over 50% of this budget will be allocated to renewable and alternative energy.

To reduce the country’s overall energy consumption, the Thai government is launching an energy-saving program targeting public sector agencies.

Thailand announced that manufacturers producing hybrid vehicles will benefit from a reduction in excise tax. This move will attract at least 50 billion baht (about USD 1.4 billion) in new investments over the next four years.

The Thai government is considering raising electricity prices, causing concerns in the industry about potential impacts on multinational corporate investment. Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries (FIT), stated that Thailand

To attract foreign investment, particularly from data centers, the Thai government intends to open up Direct Power Purchase Agreements (DPPA), allowing businesses to directly purchase green electricity from power generators.