Thailand’s Excise Department targets THB80 billion collection from fuel sales

Thailand’s Excise Department has targeted a collection of THB80 billion (US$2.6 billion) from sales of fuel for the fiscal year 2013, 35% higher than the previous year. According to the Bangkok Post, Director-General of the Customs Department Somchai Poolsavadi said that THB60 billion (US$1.95 billion) in excise taxes were collected from sales generated last year. The higher target is based on the expected increase in demand for fuel due to the large number of cars being purchased under the government’s first-time car buyer rebate program, which was launched last year.
The program aims to help the auto sector recover from last year’s floods by offering tax rebates of up to THB100,000 (US$3,255) to first-time car buyers of 1,500cc engines or less. So far, 292,000 cars have been sold under this program. Tax rebates are already estimated to reach THB21.2 billion (US$690 million).
The total collection target of the Excise Department for taxes on fuel, cars, cigarettes and alcohol beverages for fiscal year 2013 which begins in October, is THB412 billion (US$13 billion), higher than the estimated revenue for fiscal year 2012 of THB379 billion (US$12 billion). The target assumes that excise taxes for diesel fuel will still be at half a satang per liter (US$0.0003 per liter), under a special government subsidy which has been extended indefinitely. (October 15, 2012)