Bangkok: Excise Department pushes forward with battery tax, admits salt tax needs careful study, reveals EV board extends time to build factories in the country. Ms. Kullaya Tantitemit, Director-General of the Excise Department, announced this initiative during the department's 93rd anniversary celebration.
According to Thai News Agency, the Electric Vehicle (EV) board has agreed to extend the timeline for the private sector to prepare for proposing new electric vehicle production plants to the Cabinet. Under the current conditions, the production of electric vehicles in the country is set to reach 1.5 times the number of imports by the following year. The Excise Department is advocating for battery taxes to bolster the growth of electric vehicles, with the public showing increased interest in purchasing them. The proposed tax rates will vary based on battery usage, with higher taxes on disposable batteries and lower taxes on smaller rechargeable batteries, aiming to promote environmental care. This tax is expected to be enforced by 2025.
The Excise Department reported collecting 173,987 million baht in tax revenue in the first four months of the fiscal year, marking an increase of 1,280 million baht or 0.74 percent. The majority of this revenue came from oil taxes, totaling 75,687 million baht, reflecting a 25.61 percent increase. Beer taxes contributed 32,000 million baht, an increase of 4.4 percent, attributed to the recovery of tourism. However, tax revenue from cars declined by 31 percent, presenting a challenge. Despite this, the department is optimistic about meeting the annual tax collection target of 697,000 million baht.
In the health care sector, the department is examining the feasibility of a salt tax, following the implementation of a sugar tax on various products. The salt tax proposal requires careful study and input from multiple sectors, focusing on snacks and foods with high sodium content but exempting seasonings and condiments such as salt and fish sauce. The department acknowledges that implementing the salt tax will take time, similar to the sugar tax, which required five years before enforcement.