Thailand’s proposed biofuel tax relief faces a THB10 billion budget constraint
In Thailand, Agrospectrum Asia reports the country is considering targeted excise-tax reductions for E20 gasoline and B20 biodiesel to ease fuel costs while supporting agricultural feedstock producers, including sugarcane, cassava and palm-oil farmers. However, the proposal faces tight fiscal constraints, with the government reporting just over THB10 billion in available fiscal space for the relevant budget period. Finance Minister Ekniti Nitithanprapas has also identified the Oil Fuel Fund and contributions from refinery windfall profits as alternative ways to manage energy prices. No tax reduction has yet been confirmed; the government is weighing the potential consumer and agricultural benefits against lost public revenue.
Category: Policy
