The Thai cabinet has approved the implementation of a carbon tax in 2025 to promote environmental sustainability and address climate change challenges. The levy will be incorporated into the oil tax without impacting retail fuel prices.
The Thai cabinet has approved a carbon tax of 200 baht ($5.88) per ton of carbon emissions, making Thailand the second ASEAN nation after Singapore to adopt such a measure.
The tax restructures the excise system by incorporating carbon pricing into oil tax calculations.
This approach seeks to minimize retail oil price increases while encouraging more environmentally responsible behaviors. Additionally, it supports international trade negotiations, where environmental impact is a key concern.
The new carbon price mechanism will apply to gasoline, gasohol, kerosene, jet fuel, diesel, biodiesel, liquefied petroleum gas, and fuel oil.
The carbon tax is part of Thailand’s broader strategy to achieve carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065.
