Bangkok: The Excise Department is enhancing its revenue collection under the ESG (Environmental, Social, and Governance) concept, transitioning from a tax collector to a "facilitator," and using excise taxes to drive economic and environmental progress. Dr. Pornchai Theeravech, Director-General of the Excise Department, announced this transformation during the department's 94th anniversary celebration. The department has evolved from focusing solely on taxing products impacting health and society, such as alcohol and tobacco, to becoming a pivotal organization utilizing excise taxes as a policy tool to promote the green economy, bolster fiscal stability, and support sustainable national development.
According to Thai News Agency, the Excise Department has previously implemented significant tax measures, including a fuel tax increase of 1 baht per liter to align with energy costs and enhance fiscal stability. The measures also included supporting electric vehicle (EV) use to boost the competitiveness of the Thai automotive industry and reduce environmental impact. The department further reduced the entertainment and leisure tax from 10% to 5% to stimulate the economy and tourism and revised liquor production regulations to support small-scale producers, thereby strengthening the grassroots economy.
Dr. Pornchai further stated that by 2026, the Excise Department aims to drive policies under the ESG framework, shifting from "tax collector" to "supporter" to help businesses and industries adapt appropriately. Planned tax measures include promoting a low-carbon society, supporting clean energy, prioritizing public health through regulation, and enhancing transparency by aligning laws with international standards. The department has adopted the "Excise Exercise" strategy as a core principle, preparing future tax measures such as expanding the tax base for environmentally impactful goods and luxury goods or services.
To support these initiatives, the Excise Department is implementing measures such as tax incentives for environmentally friendly products like sustainable aviation fuel (SAF) and biofuels, a salt tax to address health issues from excessive sodium consumption, restructuring battery taxes based on lifecycle and energy efficiency, and converting cigarette taxes to a single rate system. The department has also intensified efforts to crack down on excise law violations through integrated cooperation with partner networks to establish a fair and transparent tax system.