.jpg)
Thailand is set to implement a carbon tax as early as the end of this year. (Photo: iStock)
Thailand's carbon tax is expected to be implemented this year. Officials from the Ministry of Finance have revealed plans to link the carbon tax with the excise tax to prevent companies from passing on costs to consumers. Additionally, the country will adjust the unified tax rate for batteries based on carbon emissions, encouraging the production of low-carbon batteries.
Thailand vows to implement the carbon tax by the end of the year
Deputy Minister of Finance Paopoom Rojanasakul recently announced at the forum "Road to Net Zero 2024: The Extraordinary Green" that the country is set to propose carbon tax measures, aiming for cabinet approval and implementation within the year.
He pointed out that the carbon tax will be combined with the excise tax. For example, the current fuel excise tax is 6 Thai baht per liter (about 0.19 USD). After the new system is implemented, this tax rate will remain unchanged, but 1 Thai baht will be collected under the carbon tax.
The Thai government has repeatedly emphasized that the carbon tax will not impact consumers. Therefore, in the new tax structure, the general public will not face additional tax burdens, while oil companies will need to pay the carbon tax based on their emissions reductions, which will influence their carbon-related costs. Each ton of emissions will be calculated according to the carbon tax rate and borne by the companies themselves, with the hope of encouraging the use of clean energy.
Paopoom also mentioned that the current unified battery excise tax rate of 8% will be adjusted. In the future, the rate will be determined based on the carbon emissions of the batteries, with higher emissions resulting in higher tax rates, promoting the production of more low-carbon batteries. Furthermore, companies that significantly reduce their emissions may even be eligible for tax refunds.
Thai government encourages the use of renewable energy
A source from the Ministry of Energy indicated that the government is considering expanding the procurement of surplus electricity from households to increase the adoption of rooftop solar systems.
Last year, households selling surplus electricity from rooftop solar exceeded government projections. With recent strong support from businesses and Congress for solar energy, as well as the revised National Power Development Plan (PDP) significantly increasing the share of renewable energy, the supply is expected to continue growing. However, due to current cap regulations, connecting to the grid remains a challenge.
According to initial plans, the Thai government aims to purchase 90 MW of solar power from households between 2021 and 2030. An unnamed official stated that if more households are allowed to sell rooftop solar power to the national grid, it could boost the installation rate of rooftop solar systems among the general public.
Source: Bangkok Post(1)、(2)、The Nation
