The Excise Department is studying a plan to impose higher taxes on fuel, alcohol, beer, tobacco and telecommunications services with the aim of doubling revenue to almost 1 trillion baht by 2027.
With the changes, the tax-collecting agency's revenue is estimated to reach 829 billion baht by 2022 and 960 billion by 2027, said director-general Somchai Pulsawas.
Without the tax hikes, the department's revenue would be 803 billion baht by 2025 and 899 billion by 2027, he said, adding that the estimates are based on GDP growth averaging 3% a year.
The excise tax on diesel and petrol would be gradually increased, Mr Somchai said.
The Excise Department would add 40 satang a litre to the petrol tax this year to make it 5.35 baht, followed by a one-baht hike next year to 6.35 baht and an increase to 8.35 baht in 2021.
The excise tax on diesel would rise by 40 satang a litre to six baht this year, climbing to nine baht by 2021. The ceiling rate is set at 10 baht a litre.
The study also extends to products that are considered harmful to the environment and health such as tea, coffee and lubricants.
These would generate an estimated 6 billion baht in tax revenue a year, Mr Somchai said.
The hikes on alcohol, beer and tobacco excise tax are expected to contribute an additional 20 billion baht a year.
The excise tax on telecommunications services is expected to be imposed in 2022.
Mr Somchai said that the amendment to change the excise tax base across the board to state-recommended retail prices from ex-factory prices, now pending deliberation by the Council of State, would also help boost the department's revenue by 10 billion baht a year.
The Excise Department, the second-biggest tax-collecting agency after the Revenue Department, aims for 496 billion baht in tax revenue this fiscal year, up 13% from last fiscal year.
Excise tax collection in the first six months to March surpassed the target for the period by 9 billion baht, and the department recently estimated that fiscal-year revenue would exceed the target by 18 billion baht.