Thailand’s cabinet has given the nod to a new carbon tax of 200 baht (approx. $5.9) per ton of carbon emissions, marking a significant step in the nation’s push to curb greenhouse gas emissions.
According to Deputy Finance Minister Paopoom Rojanasakul, the levy will be seamlessly integrated into the current oil tax framework, ensuring that retail prices for oil and related products remain unaffected.
This adjustment in the excise tax structure, which now incorporates carbon pricing, is designed to stimulate environmentally friendly consumer habits. It is also intended to bolster Thailand’s position in international trade discussions, where environmental considerations are increasingly pivotal.
Thailand is committed to achieving carbon neutrality by 2050 and aims for net-zero greenhouse gas emissions by 2065. With the automotive and oil sectors responsible for 70% of the country’s carbon emissions, the new tax covers products such as gasoline, gasoline, kerosene, jet fuel, diesel biodiesel, liquid petroleum gas, and fuel oil. The measure underscores Thailand’s broader environmental strategy without imposing additional costs on the industrial sector or consumers at the pump.
