Extension on diesel tax cut sought
The Finance Ministry plans to extend the diesel excise tax cut for another month, for fearing that higher prices would exacerbate flood impacts.
Finance Minister Thirachai Phuvanatnaranubala said that the plan would be submitted to the Cabinet next week. If approved, the tax cut would end on Jan 31, 2012, instead of this year.
"This will give consumers some time to adjust themselves, following negative impacts from the floods. Meanwhile, we need to take into account global oil prices," he told reporters.
At present, diesel is taxed Bt0.005 per litre, against Bt5.30.
In the package for the Cabinet's consideration will include individual tax allowances on house repair expenses. The Finance Ministry will also allow affected factories to book depreciation costs on new machinery in a shorter period.
Meanwhile, Thirachai noted that the ministry still opposes the Office of Insurance Commission's plan to set up the national disaster fund, saying that it remains unclear how to finance the establishment.
