The Thai Cabinet gave its approval to a draft Ministerial Regulation, proposed by the Ministry of Finance (MoF) on 21 January 2025, which aims to introduce a carbon tax as part of the country’s ongoing efforts to reduce greenhouse gas emissions and enhance environmental sustainability.
The carbon tax will initially be set at THB 200 per tonne of carbon equivalent.
The new regulation will integrate the carbon tax into the existing excise tax framework for oil and petroleum products, with no changes to the current tax rates for consumers. This approach is designed to foster the transition towards a decarbonised economy, reduce the national carbon footprint, and encourage sustainable practices among businesses and individuals, while ensuring the Government’s revenue remains unaffected.
The regulation sets the stage for the eventual enactment of the Climate Change Act.
Earlier, Thailand’s Deputy Finance Minister Paopoom Rojanasakul announced that the country will implement a carbon tax by 2025, as part of its efforts to address climate change and promote sustainable practices, on 26 September 2024.
