The carbon tax will initially target emissions from oil products, set at a rate of 200 baht per metric tonne. This move will make Thailand the second country in the ASEAN region, following Singapore, to implement such a tax, highlighting its dedication to environmental protection and sustainable development.
Incorporating the carbon tax into the current oil tax framework, the transition is designed to be revenue-neutral. The Excise Department emphasized that this tax will play a crucial role in reducing carbon emissions and fostering environmentally responsible behavior. Complementing this, the government has been promoting the adoption of electric vehicles (EVs), resulting in a remarkable 685% surge in EV sales in 2024.
Further supporting eco-friendly initiatives, the department is considering differential tax rates for batteries, particularly those used in recycling processes. This measure aims to motivate businesses to engage in sustainable practices and support a circular economy.
The announcement was made with several key officials and stakeholders in attendance, underscoring the collaborative effort behind Thailand’s ambitious environmental strategy.