Tax cuts won’t dent revenue

The country is likely to meet its revenue collection target despite the excise tax on diesel being halved for three months, said Finance Minister Arkhom Termpittayapaisith on Friday.

The cut from six to three baht per litre is to help ease the impact of high energy prices on the cost of transport and consumer goods, but with diesel excise tax being one of the main contributors to state coffers there are concerns about the impact on the country’s revenue.

The Excise Department estimates it will lose about 17 billion baht from the tax cut. It collects diesel excise tax of 5.99 baht per litre — totalling 12 billion baht a month — from the country’s monthly diesel consumption of approximately 2 billion litres.

Mr Arkhom said an assessment will have to be made on how much…