Excise tax cut, cash aid among govt steps to tackle oil price surge

The Cabinet, at its special meeting today, rolled out a set of measures to cushion the impacts of rising oil prices on many sectors of society, including an excise tax reduction on finished oil products, soft loans for SMEs, 100 baht increase in monthly subsidies for state welfare card holders and other forms of aid for public transport and trucks, farmers and owners of fishing vessels.

Finance Minister Ekniti Nitithanprapas told a press conference today that, even though the new government is yet to take office, the caretaker administration can still use existing mechanisms to mitigate the rise in oil prices.

Finance Permanent Secretary Lawaron Saengsanit said that, after the Cabinet decided to cut excise tax on finished oil products, the Finance Ministry will work out by how much the tax will be cut and will report back to the Cabinet for finalisation.

Excise tax ranges from 6 baht 7.50 baht/litre as follows:

· 6.92 baht on diesel

· 7.50 baht on benzine

· 6.75 baht on gasohol 95 and 91

· 6 baht on E20

· 1.1215 baht on E85

Regarding the 100-baht increase in the monthly subsidy for welfare card holders, Lawaron said the increase will initially be for one month only, because of the legal constraints on the caretaker government, adding that the issue will be reconsidered when the new administration is installed.

He also said that government support will also be extended to truckers, public transport operators, motorcycle taxi drivers, farmers, industrial and construction groups which have contractual commitments to the state, as well as SMEs.

Regarding SMEs, he said the Finance Ministry will also set aside about 10 billion baht in soft loans to be extended via the Government Savings Bank.

Ekniti said Prime Minister Anutin Charnvirakul has urged all governmental agencies, both at the central and local levels, to conserve energy and to cancel all overseas sight-seeing trips.

Lawaron explained that all these measures, which involve the use of taxpayer’s money, will have to be approved by the Election Commission because of the caretaker status of the administration.

As for the excise tax cut, he said that fuel prices will be reduced in line with the amount of the excise tax reduction.

Meanwhile, Commerce Minister Suphajee Suthumpun said that the ministry has enforced five levels of price controls on goods, with the top level being the requirement for producers to seek permission from the Internal Trade Department if they want to increase the prices of goods, such as canned fish, instant noodles, milk and palm oil.

The number of controlled goods has been increased from 59 to 66, she said, adding that, for goods which are not price controlled, the Commerce Ministry has sought cooperation from their producers to arrange for goods to be sold to the public at discounted prices under the “Thais Help Thais” program.