The excise tax hikes on jet fuel to four baht a litre and on lubricant to five baht a litre will increase the country's tax revenue by about 8 billion baht a year, says a senior official.
A man pours lubricant into a motorcycle tank. The excise tax hike on lubricant is expected to generate more than 4 billion baht in revenue for the government this year. TAWATCHAI KEMGUMNERD
Previously jet fuel had been taxed 20 satang a litre and lubricant had no excise tax.
The cabinet approved on Tuesday the Finance Ministry taxing the two items.
Somchai Poolsavasdi, director-general of the Excise Department, said the latest tax move took effect on Wednesday.
The projection is at least 8 billion baht in extra government tax revenue.
"We expect the excise tax on jet fuel to generate 4 billion baht this year and the lubricant tax to generate about 4-5 billion," Mr Somchai said.
The department made the tax request for the two items to create fairer competition in business, he said.
"The move will help the country's environment because tax revenue from users of polluting products will be used for environmental management," Mr Somchai said.
"This is especially true for lubricant, which we never taxed before, even though it is a big pollutant. All vehicles use lubricants and need oil changes after a certain period, and these liquids become sludge that require high-cost treatment."
He said diesel is now taxed as much as six baht a litre, but jet fuel was previously only 20 satang even though both are commonly consumed items. The tax gap between the two products was too wide, said Mr Somchai.
Thai aviation has been rising rapidly in recent years as a result low-cost carrier airlines, causing greater jet fuel consumption, exceeding 1 billion litres a year, he said.