Thailand weighs biofuel tax cuts to help farmers and reduce imports
In Thailand, The Nation reported that the Thai government is considering cutting excise taxes on biofuels, specifically E20 and B20, to make them cheaper than fully imported diesel.
The tax relief is intended to directly benefit local farmers who grow the crops used for biofuel production, such as sugar cane, cassava, and oil palms, according to the report.
A primary motivation for the policy is to reduce Thailand’s heavy reliance on foreign energy imports, increase self-reliance, and shrink the national trade deficit.
“When it comes to the price of diesel we have to import from abroad, if it is blended with ethanol or palm oil, which we call B20 or E20, we want our tax cuts to benefit farmers who grow sugar cane, cassava and oil palms,” Finance Minister Ekniti Nitithanprapas said.
Category: Policy
