Thailand
Thailand: No policy to extend jet fuel tax reduction
Sept 30 will be the last day for excise tax reductions for jet fuel and the Excise Department has no policy to extend the measure, said a source at the department who spoke on condition of anonymity.
The main reason for not prolonging the measure is that the department had expected low-cost airlines to reduce airfares for passengers, the source said. The airlines instead increased fares while claiming that the hike was need for social distancing measures, according to the source.
An amount worth 100,000 baht per trip from excise tax reductions for jet fuel has instead gone into the pockets of airlines, while the department has lost excise revenue of 2 billion baht from the measure during the one-year span of the policy, the source said.
Any extension will rest with the yet-to-be-named finance minister, the source said.
The excise tax is currently 0.20 baht per litre, down from 3-4 baht.
Seven domestic airlines in August requested an extension in the excise tax reductions for jet fuel and sought soft loans to help mitigate their hefty losses.
Their pleas have been publicised since 2019 as airlines were battered by the weak economy and the strengthening baht and intense competition kept them from raising fares.
Source: https://www.bangkokpost.com/business/1986671/no-policy-to-extend-jet-fuel-tax-reduction