Thailand Plans to Introduce a Carbon Emission Tax

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Thailand Plans to Introduce a Carbon Emission Tax

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Thailand will introduce a carbon tax to match the global trend, as reported by Bangkok Post on September 12. According to Thailand’s Excise Department director-general Ekniti Nitithanprapas, as the European Union (EU) countries plan to impose a carbon border tax on some carbon-intensive imports from 2026, Thailand could introduce its own carbon tax so that it can bargain in export markets to exempt tariffs on Thai products. Ekniti explained that introducing a carbon tax also serves the department’s policy of promoting the environmental, social, and governance (ESG) concept in its tax measures. In addition, Ekniti disclosed last week that the department is working on tax measures to support the production of bioplastics, bio-jet fuel, and environmentally friendly batteries.

The EU countries on March 15 agreed on a draft plan to impose world-first carbon dioxide emissions tariffs on imports of polluting goods, to ensure fair competition between European industries and their overseas peers who don’t have to pay for carbon emissions. According to a statement by the European Commission, if importers can prove that a carbon tax has been levied on their products during the manufacturing process, the corresponding amount can be offset in their final bills of a carbon border tax. The unprecedented cross-border carbon tariff has influenced the decisions of policymakers and enterprises in countries that are trading partners of the EU. Aside from Thailand, Turkey and Indonesia have also released plans to introduce carbon taxes to alleviate the EU’s carbon tariff’s impact on their economies.