Prayut pushes for another diesel tax cut extension as expiry date nears
Caretaker Prime Minister Prayut Chan-o-cha has ordered the Finance Ministry and other relevant agencies to finalise preparations for extending the diesel tax cut, which is due to expire on July 20.
The tax cut was imposed to relieve cost-of-living burdens.
Energy Minister Supattanapong Punmeechaow said on Tuesday that people would have to wait for the decision on whether the tax cut would be extended.
Supattanapong added that the caretaker government would have to seek permission from the Election Commission to extend the cut of 5 baht per litre. The tax reduction is costing the government about 10 million baht per month in lost revenue.
Caretaker Finance Minister Arkhom Termpittayapaisith has already said his ministry is ready to discuss the next tax cut extension with the Energy Ministry.
Arkhom said he also believes his ministry can boost liquidity of the Oil Fuel Fund to subsidise diesel and prevent its price rising above 35 baht per litre.
Excise Department director-general Ekniti Nitithanprapas said the department needs to discuss the issue with the Finance Ministry before making any move, pointing out that extending the tax cut would hit government revenue.
So far, seven successive rounds of diesel tax cuts have cost the government 158 billion in lost revenue, he said.
