Thailand unveils six eco-friendly tax measures for 2027
Thailand’s Excise Department plans to roll out six new tax initiatives to promote environmental sustainability and improve public health.
Director-General Pornchai Thiraveja said these policies aim to align with shifting global trade standards, which now place more emphasis on climate action and public health. The measures also support upcoming carbon-related regulations.
Bangkok Post reported that the first measure expands the tax scope for products harmful to the environment. It also prepares Thailand for the European Union’s Carbon Border Adjustment Mechanism, a major import tax based on carbon emissions.
This initiative aligns with Thailand’s upcoming climate change law, recently approved by the Cabinet, which includes a carbon tax and emissions trading system.
The second measure widens the tax base for luxury goods and services.
The third introduces incentives for green products, such as sustainable aviation fuel and bio-based fuel.
The fourth policy proposes a salt tax to address health problems linked to excessive sodium consumption.
The fifth revises battery tax structures, focusing on factors like charging cycles and energy density to reduce environmental harm and support innovation.
The sixth and most notable measure restructures the cigarette tax system. The department plans to submit a proposal to the Cabinet for a uniform tax rate to replace the current two-tier system: 25% for cigarette packs priced at 72 baht or less, and 42% for those priced higher.
This dual system has driven manufacturers to produce cheaper cigarettes to expand their market share. To support this change, the department will introduce assistance programmes for the Tobacco Authority of Thailand and promote cigarette exports.
The department also intends to tighten enforcement on illegal cigarette imports and review reference pricing for tax calculations. Officials are reconsidering tax exemptions for fruit and vegetable juices and plan to broaden excise taxes on service fees.
The Excise Department aims to collect 578 billion baht in 2026 and 611 billion baht in 2027.
In similar news, Bangkok Airways received a 5-star sustainability award from the Tourism Authority of Thailand (TAT) for its efforts to promote greener aviation and responsible tourism.
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