ID :
176924
Thu, 04/21/2011 - 06:09
Auther :
Shortlink :
https://oananews.org//node/176924
The shortlink copeid
THAI GOVT CUTS TAXES TO CAP DIESEL PRICE
By Jamaluddin Muhammad BANGKOK, April 21 (Bernama) -– The Thai Government Wednesday gave its approval to cut excise tax and value-added tax (VAT) on diesel from 5.70 Baht/litre(about 57 sen/litre) to 0.005 Baht/litre, effective Thursday, until Sept 30.
Energy Minister Warnarat Charnweerakul said the Cabinet at its weekly meeting here made the decision to cap the diesel pump price at 30 Baht a litre.
The government was concerned on the impact of the diesel price hike on inflation, consumer goods, transportation cost and overall country's economy, he told reporters after attending the Cabinet meeting.
The new measure is to replace temporarily the existing mechanism in
providing subsidy to diesel consumers through the 34-billion Baht (about RM3.4 billion) State Oil Fund as the fund is expected to be depleted by the end of this month. (US$1=RM3.01)
Diesel subsidy costs the fund 300 million Baht (about RM30 million) a day.
The new measure would cost the country 45 billion Baht (about RM4.5 billion) in revenue but it would not affect this year's budget and fiscal conduct, according to the finance ministry.
Out of 5.70 Baht of the exercise tax and VAT, 0.40 Baht is for VAT
currently.
Prime Minister Abhisit Vejjajiva had said the new solution would not unduly affect the country's monetary policy and the people's standard of living.
Energy Minister Warnarat Charnweerakul said the Cabinet at its weekly meeting here made the decision to cap the diesel pump price at 30 Baht a litre.
The government was concerned on the impact of the diesel price hike on inflation, consumer goods, transportation cost and overall country's economy, he told reporters after attending the Cabinet meeting.
The new measure is to replace temporarily the existing mechanism in
providing subsidy to diesel consumers through the 34-billion Baht (about RM3.4 billion) State Oil Fund as the fund is expected to be depleted by the end of this month. (US$1=RM3.01)
Diesel subsidy costs the fund 300 million Baht (about RM30 million) a day.
The new measure would cost the country 45 billion Baht (about RM4.5 billion) in revenue but it would not affect this year's budget and fiscal conduct, according to the finance ministry.
Out of 5.70 Baht of the exercise tax and VAT, 0.40 Baht is for VAT
currently.
Prime Minister Abhisit Vejjajiva had said the new solution would not unduly affect the country's monetary policy and the people's standard of living.
