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| Finance Mnister Decides against Excise Tax Cut for Diesel |
| UPDATE : 28 April 2008 |
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The Finance Minister has decided not to cut the diesel excise tax as the world oil price is still unstable and the tax cut will not help alleviate the burden on consumers by much. However, he is considering other measures to help the problem.
Finance Minister Surapong Suebwonglee said that, after discussing with the Energy Minister, Poonpirom Liptapanlop, he has decided not to cut the diesel excise tax as the world oil price is still unstable.
He estimated that world crude oil prices can reach 120 US Dollars per barrel. Therefore, an excise tax reduction might not solve the problem. However, he is considering other measures such as renewable energy, but he needs a couple of months to do more research.
The Finance Minister asserted that measures to alleviate the burden of higher fuel costs for entrepreneurs cannot be handed in to Cabinet this week as the Finance Ministry needs more time to consider the issue.
The Energy Minister revealed that the Finance Minister agreed with the proposal to prolong the tax cuts from 2008 to 2010 to support entrepreneurs of NGV buses and trucks.
In the meantime, Thai Bus Business Association president Pichet Jiamburaset reveals the association submitted an official petition for a fare hike today. If the Transport Ministry fails to give the go ahead for the fare increase, Pichet says the association will be forced to stop operating because they are not making enough money to buy fuel.
The Transport Company is asking for a raise of nine satang per kilometer, while the Bangkok Mass Transit Authority is asking for 1.5 to two baht per kilometer raise.
Meanwhile Vice President of the Thai Boat Association, Parinya Rakwa-thin says he will submit a petition for an increase in ferry fares to the Transport Ministry on behalf of other Thai ferry operators. Parinya says the government had promised to allow ferry operators to raise fares by two baht if diesel exceeds 31 baht per liter. Parinya calls for the government to provide ferry operators with sources for cheap fuel if they won't give the green light to the price hike.
The association will call a meeting tomorrow to discuss how they will negotiate with the Marine Department about the price increase.
Land Transport Department acting director-general Chairat Sanguansue has scheduled a meeting with public transport operators tomorrow. It's expected that the bus operators will be given permission to raise fares but not by the amounts they have requested.
The Land Transport Department director-general says, for the long term solution, the department will give bus operators access to low-interest loans to finance the installation of NGV engines on public buses.
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