ChatGPT said: Thailand has begun moving forward by implementing carbon tax collection. The carbon tax is one of the key measures adopted by the Thai government to drive the nation toward achieving carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065. This serves as Thailand’s global commitment to seriously mitigate the impacts of climate change. In addition, other environmental and climate-related legislations are currently under review and are expected to be enacted in the near future.

The government is pushing forward as the Cabinet has approved, in principle, the issuance of a ministerial regulation to impose a carbon tax of 200 baht per ton, supporting Thailand’s path toward Net Zero. The Deputy Minister of Finance confirmed that the measure will not affect fuel prices or business operating costs. 

On January 21, 2025, Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, revealed that the Cabinet had approved in principle the draft Ministerial Regulation on the determination of excise tax rates for the carbon pricing mechanism, which will be collected from oil and petroleum products. This draft regulation, proposed by the Excise Department under the Ministry of Finance, aims to use taxation as a tool to encourage businesses and the public to adjust their energy consumption behaviors, reduce greenhouse gas emissions, and promote environmental sustainability.

Details of the draft carbon tax 

1. Product groups subject to carbon tax collection
   Oil and petroleum products subject to the carbon tax include:

• All types of gasoline and gasohol (E10, E20, E85)
• Kerosene and illuminating oil
• Jet fuel
• Diesel and biodiesel blends (B5, B7, B10)
• Liquefied Petroleum Gas (LPG) and Propane Gas
• Fuel oil and similar oils

2. Carbon tax rate
   The draft ministerial regulation stipulates a carbon tax rate of 200 baht per ton of carbon dioxide equivalent, with the calculation based on the greenhouse gas emission factor of each type of fuel.

Impacts and advantages of the measure

1. It does not affect fuel costs or the industrial sector.
   Mr. Paophum Rojanasakul, Deputy Minister of Finance, affirmed that this carbon tax measure will not affect domestic retail fuel prices or the cost burden on businesses. The tax structure has been designed to align with economic mechanisms and government policies, focusing on creating positive incentives for producers and consumers to change their behavior rather than increasing expenses.
2. Promote environmentally friendly industries
   This measure aims to encourage industries to transition toward environmentally friendly practices, particularly in the automotive and energy sectors, which are the main sources of greenhouse gas emissions in the country (accounting for 70% of total emissions in Thailand). Incorporating a carbon pricing mechanism into the tax structure will help Thailand remain competitive in international trade, especially in markets that prioritize environmental issues and carbon reduction, such as the European Union and the United States.
3. Raise awareness and promote behavioral change among the public
   In addition to businesses, the carbon tax policy also serves as a tool to encourage public participation in reducing greenhouse gas emissions. It raises awareness of the environmental impacts of daily life, such as choosing low-carbon fuels, using energy efficiently, and adopting renewable energy sources. These actions will contribute to mitigating the long-term effects of climate change. 

Thailand's trends and directions towards Net Zero targets

The carbon tax measure represents an important step for Thailand toward a low-carbon economy, a global trend that many countries are prioritizing. Using taxation as an economic tool will help drive the adaptation of domestic industries, enabling them to remain competitive in the long term.

In addition, the government also plans to support the electric vehicle (EV) industry and the use of clean energy alongside tax measures, such as providing tax incentives for electric vehicles, investing in infrastructure for EV charging stations, and promoting renewable energy. These efforts will help Thailand achieve its environmental goals more effectively.

FDI Environmental and Sustainability Consulting Experts

Experts from FDI expressed the view that Setting a carbon tax rate of 200 baht per ton is one of the key measures adopted by the Thai government to reduce greenhouse gas emissions and promote a green economy. This measure will not affect retail fuel prices or business operating costs but will create incentives for all sectors to transition more quickly toward environmentally friendly practices, resulting inChatGPT said: which will lead to greater sustainable environmental development in the manufacturing and service sectors. It also helps raise public awareness and encourages participation from all sectors in using resources efficiently and being more mindful of environmental impacts. More importantly, it establishes standards for businesses in six main product categories that export to the European Union and other countries implementing the Carbon Border Adjustment Mechanism (CBAM). อ่านต่อ CBAM คืออะไร ?  This carbon price can also be used as a reference in cases where carbon price differentials are applied to products, thereby creating new opportunities for future economic growth. 

ChatGPT said: It can be seen that the current carbon tax measure announced by the government marks only the beginning of a shift in business operations toward a low-carbon society. This aligns with the national campaign encouraging all sectors to urgently reduce greenhouse gas emissions so that Thailand can achieve its Net Zero goal by 2065. Whether this carbon tax will remain limited to the fuel group or eventually expand to other product categories is something that both the public and businesses must continue to keep a close watch on.