(CTN News) – Thailand’s cabinet on Tuesday agreed to extend the reduction in excise taxes on diesel for another two months to Sept. 20 in order to alleviate the impact of rising energy prices, according to the country’s finance minister.
Termpittayapaisith said in a statement that the excise tax cut on diesel by 5 baht ($0.138) per liter is only a short-term measure during the period of high global oil prices, and not a permanent one.
According to him, if global oil prices start to come down again, the government will continue to use the country’s oil fund to stabilize retail diesel prices so as to minimise the impact on people’s living costs and the country’s economic recovery, he said.
As energy diesel fuels prices increased in June, inflation increased to 7.66% for the first time in almost 14 years, as a result of rising energy costs.
According to Thanakorn Wangboonkongchana, spokesman for the government, the government has been told that the reduction of the diesel tax is expected to result in lost revenue of approximately 20 billion baht ($551.88 million).
According to the minister, the cabinet has also offered companies tax deductions on expenses incurred on seminars or exhibitions held up until the end of the year as a way to boost domestic tourism and activity.
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