Airline association calls for delay of July 1 tax hike on jet fuel
The Airlines Association of Thailand (AAT) has urged the government to lower its excise tax on jet fuel for domestic flights to help them manage operating costs without raising flight fares.
The Finance Ministry's Excise Department will resume collecting excise tax on jet fuel on July 1 at a rate of 4.726 baht per litre, compared to the previous rate of 0.20 baht per litre.
This will increase operating costs for airlines and they may be forced to raise fares for domestic flights to avoid bankruptcy, the AAT said.
Phuttipong Prasarttong-Osoth, president of the association, said the AAT plans to submit a proposal to the Finance Ministry asking it to reconsider the tax increase. It will call for the excise tax on jet fuel to be gradually increased, kept at its current rate or set at a new rate lower than the rate that kicks in on July 1.
The aviation and tourism industries are still recovering from the pandemic and a low tax on jet fuel will help stimulate more activity in the overall economy, the AAT said.
It said airlines need support to avoid raising flight fares.
The AAT has been in talks with the Finance Ministry and the Excise Department to extend the tax break on aviation fuel, Phuttipong said.
