ID :
176179
Mon, 04/18/2011 - 14:33
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http://m.oananews.org//node/176179
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Thai government maintains freeze on local diesel price
BANGKOK, April 18 (TNA) - The Thai government has resolved to cut the excise tax on diesel by about 5 baht per liter in order to keep the retail price at 30 baht a liter despite expected costs being at about 45 billion baht in lost tax revenue.
Prime Minister Abhisit Vejjajiva said that after discussing the issue with finance and energy ministers, they resolved to slash the excise tax from 5.30 baht to 0.005 baht per liter in order to further cap the local diesel price at 30 baht per liter. Overall, tax on diesel will be 5.70 baht per liter once the value-added tax is included. The cabinet will be asked to approve the measure this Wednesday. The State Oil Fund currently sits at only slightly over 4 billion baht, which should be just enough to freeze the prices until the end of this month. With the price of crude oil in global markets standing at 115 US dollars per barrel, the local diesel price would be 36 baht a liter if it were not for the excise tax cut or the subsidy by the State Oil Fund.
Abhisit insisted that the measure to freeze the diesel price would not affect the financial status of the country. He said that if the diesel price rose beyond 30 baht a liter, transport operators and product manufacturers would demand price increases and that would affect inflation and overall economic growth.
Finance Minister Korn Chatikavanij said the reduction in the excise tax on diesel would cause the government to lose about 45 billion baht in tax revenue from now until the end of the 2011 fiscal year, comprising 42.48 billion baht of the excise tax and 1.9 billion baht of the value-added tax.
Energy Minister Wannarat Channukul said he would convene the National Energy Policy Council on Tuesday to reduce the diesel subsidy by 0.40 baht to only 6 baht per liter as global oil prices tended to decline. He is confident that the State Oil Fund will not need a loan to continue to freeze energy prices. He said that the reduction in the excise tax was indefinite and the next government would decide on the issue later. (TNA)
Prime Minister Abhisit Vejjajiva said that after discussing the issue with finance and energy ministers, they resolved to slash the excise tax from 5.30 baht to 0.005 baht per liter in order to further cap the local diesel price at 30 baht per liter. Overall, tax on diesel will be 5.70 baht per liter once the value-added tax is included. The cabinet will be asked to approve the measure this Wednesday. The State Oil Fund currently sits at only slightly over 4 billion baht, which should be just enough to freeze the prices until the end of this month. With the price of crude oil in global markets standing at 115 US dollars per barrel, the local diesel price would be 36 baht a liter if it were not for the excise tax cut or the subsidy by the State Oil Fund.
Abhisit insisted that the measure to freeze the diesel price would not affect the financial status of the country. He said that if the diesel price rose beyond 30 baht a liter, transport operators and product manufacturers would demand price increases and that would affect inflation and overall economic growth.
Finance Minister Korn Chatikavanij said the reduction in the excise tax on diesel would cause the government to lose about 45 billion baht in tax revenue from now until the end of the 2011 fiscal year, comprising 42.48 billion baht of the excise tax and 1.9 billion baht of the value-added tax.
Energy Minister Wannarat Channukul said he would convene the National Energy Policy Council on Tuesday to reduce the diesel subsidy by 0.40 baht to only 6 baht per liter as global oil prices tended to decline. He is confident that the State Oil Fund will not need a loan to continue to freeze energy prices. He said that the reduction in the excise tax was indefinite and the next government would decide on the issue later. (TNA)
