- Cabinet Approval and Objectives: On 21 January 2025, the Thai Cabinet approved a draft Ministerial Regulation to implement a carbon tax, aimed at reducing greenhouse-gas emissions and promoting environmental sustainability, without changing existing excise tax rates on oil and petroleum products.
- Carbon Pricing Mechanism: The carbon tax, set at 200 Thai Baht per metric ton of CO2 equivalent, will be integrated into the current excise tax structure for specific oil and petroleum products, including gasoline, kerosene, jet fuel, diesel, LPG, and furnace oil. Any increase above this rate requires Cabinet approval.
- Implementation Process: The Council of State is reviewing the draft regulations, and the Minister of Finance will issue them for publication in the Royal Gazette, expected within February 2025, to become law. The regulation aims to support decarbonization efforts while maintaining government revenue prior to the Climate Change Act’s implementation.
Source EY
