Bangkok: The Thai cabinet has approved a carbon tax of 200 THB (5.9 USD) per tonne of carbon emissions as a key component of the country’s strategy to reduce greenhouse gas emissions, Deputy Finance Minister Paopoom Rojanasakul announced. The decision, made on January 21, is a significant step towards achieving Thailand’s environmental goals.
According to Lao News Agency, the newly approved tax will be incorporated into the existing oil tax structure, ensuring that retail prices of oil and related products remain unaffected. This integration represents a shift in the internal structure of the excise tax, specifically aiming to calculate the carbon price embedded within the oil tax.
Paopoom emphasized that the carbon price setting will not impact the industrial sector’s costs or retail oil prices. The main objective of this initiative is to promote environmentally friendly consumer behavior and to support international trade negotiations centered around environmental issues.
Thailand has set ambitious targets of achieving carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065. The automotive and oil sectors, which account for 70% of the country’s carbon emissions, are primary targets of this policy. Products subject to the carbon price mechanism include petrol, gasohol, kerosene, jet fuel, diesel biodiesel, liquid petroleum gas, and fuel oil.