Thai transport minister denies plans for petrol tax hike

Transport Minister Suriya Juangroongruangkit has clarified that the proposed excise tax increase on petrol in Greater Bangkok is merely a proposal, and there are no current plans for its implementation.

This statement came yesterday, December 22, following misunderstandings about the proposal’s intent and potential ramifications.

Suriya apologised for any confusion, explaining that the idea of the tax increase was a case study, modelled after similar initiatives in other countries. He reiterated that there was no immediate plan to put this idea into action.

The Transport Ministry’s primary focus, according to Suriya, is to reduce living costs. He outlined a plan to cap electric train fares at 20 baht per trip, which is expected to take effect within the next two years. Importantly, this cap would be implemented without the need for petrol tax hikes.

Earlier in the week, Suriya had suggested a 0.50 baht increase per litre of petrol. He proposed that this could encourage motorists to utilise electric trains more frequently, with the additional revenue used to subsidise the electric train system.

This proposal was initially brought up during a senior transport officials’ meeting. The meeting was held to discuss the ministry’s 20-baht fare policy, a scheme currently upheld by the State Railway of Thailand’s Red Line and the Mass Rapid Transit Authority’s Purple Line.

The potential tax revenue from this proposed petrol increase could be used to establish a fund. This fund would cover any losses incurred by concession holders due to the cap of 20 baht per trip, reported Bangkok Post.

However, the proposition was met with opposition from Energy Minister Pirapan Salirathavibhaga, who argued that the tax hike would only add to the cost of living – the very issue the government is striving to alleviate.

Pirapan suggested that the government should explore alternative methods to raise the necessary funds to maintain affordable train fares, rather than increasing the burden on the general public.