FRIDAY, March 29, 2024
nationthailand

Excise Dept wants to hike tax on products harmful to environment, health

Excise Dept wants to hike tax on products harmful to environment, health

The Excise Department aims to “drive the economy in 2023” by increasing the tax on products that harm the environment and health.

Director-general Ekniti Nitithanprapas said on Wednesday that the department is considering raising tax on six products in fiscal 2023 – bio-jet-fuel, bioplastics, electric vehicle batteries, non-alcoholic booze and beer, electric cigarettes and carbon.

A decision on the tax rate must be taken in fiscal year 2023, but the Excise Department will decide when to implement it later, he said.

“The department has a strategy to drive the economy with excise tax under the environmental, social and governance [ESG] principle,” Ekniti said. “[Our] principle is to collect less tax or not collect any taxes for environmentally friendly products and services, while taxing products and services that are not in line with ESG principles.”

For example, the current tax rate on batteries could be reduced if they can be recycled, or made higher if they cannot, he said.

Another example is the tax rate on liquor and beer, with low tax for zero per cent alcohol but an increased tax if the alcohol by volume is higher, Ekniti said.

Excise Dept wants to hike tax on products harmful to environment, health

He explained that the department found most of the new-generation group drink alcohol “only to look good”.

Meanwhile, both the department and the private sector see this as a future trend, so the department will find a middle ground between normal beverages and alcoholic beverages.

Ekniti admitted that collecting less tax on ESG products might decrease revenue, but the department will collect more tax on products that are harmful to the environment and health.

The department has set a goal to collect 567 billion baht of taxes in fiscal 2023 and 500 billion baht this fiscal year, Ekniti said.

He added that the department has collected less tax this fiscal year after reducing the excise tax on diesel to help people affected by high energy prices.

nationthailand