Thailand considering emission-based taxation

The Excise Department in Thailand is considering revising how tax rates on petroleum products are based for the country’s refineries. Currently, petroleum products are taxed according to product type, with taxes being collected directly from refineries. A Finance Ministry official said the tax rates could be revised so that they are based on carbon emissions. Under this new plan, refineries which produce petroleum products that have carbon emissions that measure set limits could qualify for lower tax rates. The official stated this revision of the tax structure could encourage the industry to move toward environmentally friendly technology. Suparat Sirisuwanangkura, chairman of the Automotive Industry Club of the Federation of Thai Industries, cautioned that the industry will need time to adjust to the ramifications of these proposed changes. He recommended implementation to be conducted in phases. (April 15, 2011)