Bangkok: “Phao Bhum” has issued a directive to proceed with the collection of taxes on sweet, salty, and fatty foods, alongside changes in the tax structure for batteries and cigarettes. The Excise Department has been tasked with implementing these changes as a part of a broader strategy to balance economic growth, environmental sustainability, and public health. The fiscal report for 2024 shows that the Excise Department collected over 520 billion baht in taxes, marking a 9.8% increase.
According to Thai News Agency, Mr. Paopum Rojanasakul, Deputy Minister of Finance, has instructed the Excise Department to become a pivotal mechanism in maintaining tax balance across five key areas. These include economic growth, structural economic changes, environmental protection, public health, and revenue collection. The policy emphasizes the continuous collection of the mixed sugar tax and encourages a study on sodium tax mechanisms with an aim to reduce salt consumption by 30% by 2025. Additionally, a collaborative s
tudy with the Ministry of Public Health is underway to classify fats in products to better inform taxation policies.
The new directive also covers changes in cigarette taxation, aiming to reduce price mechanism distortion while supporting domestic tobacco growers. A QR Code tracking system will be implemented to curb illegal cigarette sales and ensure compliance with tax regulations. The public will be able to verify tax payments and cigarette sources through this system.
In the automotive sector, the policy aims to stimulate investment and support the entire industry through tax incentives, particularly in the production of PHEV, BEV, and FCEV vehicles. Clear guidelines are being developed to address potential short-term revenue loss as the industry undergoes restructuring for long-term economic benefits.
The excise tax on oil will include a carbon price mechanism to encourage reductions in carbon dioxide emissions. The battery tax will shift from a fixed 8% to a progressive rate, considering factors such
as life cycle and energy values, to promote the clean battery and EV car industries.
Mr. Pao Bhum highlighted that the Excise Department’s performance in fiscal year 2024 reflects an efficient tax collection system, outpacing the growth rate of the Thai economy. Tax revenues from tourism-related goods and services saw notable increases, with the beverage tax expanding by 8% and the entertainment business tax climbing by 31.3%. Battery tax collection grew by 15.6%, aligning with the electric vehicle industry’s expansion.
The suppression of tax evasion has also intensified, with 33,359 cases recorded, a 28.1% increase from the previous year. Fines amounting to 690.75 million baht were collected, showcasing the Excise Department’s proactive efforts in preventing tax evasion and protecting consumers from unsafe products.
Dr. Ekniti Nitithanprapas, Director-General of the Excise Department, affirmed the department’s commitment to driving these policies and tax measures. The department aims to enhance Thailand’s
competitiveness sustainably by aligning its operations with global changes, focusing on environmental, social, and governance (ESG) principles, and adapting to technological advancements and climate change. The EASE Excise strategy will be utilized to achieve these goals and uphold international standards.