Thailand News Update | Shoot herself in the foot

The cabinet eventually caved in this week by agreeing to cut the excise tax on diesel by three baht per litre, from the current 6 baht tax. This will for up to three months to help ease the impact of high energy prices on the cost of transport and consumer goods in Thailand.The cabinet approved halving the price until May 20.

The Excise Department will lose some 17 billion baht in tax revenue, but the Finance Minister says that the cut was another measure to ease the impact of high oil prices on people, in addition to the Oil Fund being used to help cap petrol prices at 30 baht a litre.Truck drivers have stepped up protests over recent weeks to demand the Energy Minister either resign or reduce the diesel taxes.

Meanwhile the vice-chairman of the Federation of Thai Industries, said rising crude oil prices are among external factors beyond Thailand’s control, partly because…