Thai cabinet approves carbon tax to curb emissions

The Thai cabinet approved a carbon tax of THB200 ($5.9) per ton of carbon emissions on January 21, as part of the country’s strategy to reduce greenhouse gas emissions, according to Deputy Finance Minister Paopoom Rojanasakul.

However, the new tax will be integrated into the existing oil tax structure, meaning it will not affect retail prices of oil and related products. This measure is a change in the internal structure of the excise tax that calculates the carbon price embedded in the oil tax,

The carbon price setting will not affect the cost of the industrial sector or retail oil prices, Paopoom noted.

The initiative aims to encourage more environmentally friendly consumer behaviour and support international trade negotiations focused on environmental issues, the official added.

Thailand targets carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065, while the automotive and oil sectors responsible for 70% of the country’s carbon emissions.

Products to be subject to the carbon price mechanism include petrol, gasohol, kerosene, jet fuel, diesel biodiesel, liquid petroleum gas and fuel oil.