Thai Auto Gas Association opposes excise tax increase on LPG

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Auto gas association opposes excise tax increase on LPG



BANGKOK: -- Thai Auto Gas Business Association (TAGBA) yesterday voiced opposition to the government’s plan to increase excise tax on liquefied petroleum gas (LPG) in the transport sector, reasoning that it could trigger rampant cross-sector smuggling from household to transport use.

TAGBA representatives submitted a letter to the Excise Department, calling for a delay of a planned increase of excise tax on LPG in the transport sector.

The move came one day after Prime Minister Prayut Chan-o-cha sent a clear signal to bring LPG excise tax in the sector up from 1.10 baht per liter, which will make price of LPG fuel for transport higher than price of LPG or cooking gas for household use.

The prime minister ordered concerned agencies through his deputy to create understanding with the public about the planned excise tax increase.

The group said they are concerned that the tax hike would stimulate more smuggling of LPG from the household sector to the transport sector.

It said the tax hike would also affect 1.3 million owners of LPG-fuelled vehicles and LPG filling stations and LPG conversion business worth 47 billion baht.

Excise Department director-general Somchai Poolsawadi and Energy Minister Narongchai Akrasanee told reporters yesterday that it is up to the government to decide when the excise tax hike on LPG in the transport sector will become effective.

They said nozzle rule will be applied to help prevent cross-sector smuggling of LPG.

The officials said all auto users should pay similar amount of excise tax on fuel regardless of types.

Currently, excise tax on benzene, gasohol and diesel are between 4-5 baht per liter.

However, they said excise tax on LPG should still be lower because heating value of LPG is 20 percent lower than other types of fuels.

According to the officials, a 3 baht hike of excise tax on LPG is the transport sector would raise price LPG fuel to 17 baht per liter which is still lower than prices of other types benzene, gasohol and diesel which are at nearly 30 baht per liter.

They said every baht hike of the excise tax will increase state income by 2 billion baht.

At present, the excise tax on LPG in the transport sector generates approximately 10 billion baht of income to the state yearly.

Source: http://englishnews.thaipbs.or.th/auto-gas-association-opposes-excise-tax-increase-on-lpg


-- Thai PBS 2015-06-25

[Peterbkk7]

"According to the officials, a 3 baht hike of excise tax on LPG is the transport sector would raise price LPG fuel to 17 baht per liter which is still lower than prices of other types benzene, gasohol and diesel which are at nearly 30 baht per liter."

But they did not factor the cost of converting a car to LPG, which is >30k baht!

Converting your car to LPG is worth it if the price of LPG is around 11-13 baht / L but at 17 baht (and I bet it will increase later on), LPG is no more an option.

Edited June 25, 2015 by Peterbkk7

[OttoPollmann]

"According to the officials, a 3 baht hike of excise tax on LPG is the transport sector would raise price LPG fuel to 17 baht per liter which is still lower than prices of other types benzene, gasohol and diesel which are at nearly 30 baht per liter."

But they did not factor the cost of converting a car to LPG, which is >30k baht!

Converting your car to LPG is worth it if the price of LPG is around 11-13 baht / L but at 17 baht (and I bet it will increase later on), LPG is no more an option.

How you've calculated this?

By a price of 17b/l you've to drive 23000km then you've equalized your investment. Beyond this you'll spend the half for 100km.

Of course with a lower price of LPG you'll get your investment faster back but you know nothing is free in Thailand.

Even the dead is expensive, it will cost you your life.

[Ulic]

Nobody likes tax increases, everybody likes services, the trick for the Thai auto gas association

is to have taxes raised on someone else products, tobacco, alcohol, etc and leave your product

alone. We will see how successful they are, I doubt very.

[selftaopath]

I/we converted our SUV to LPG a/b 4-5 years ago. I love EVERYTHING about it. I feel like it costs me a/b the same as it would to ride a motorbike (might not be true but that's the feel). If at all possible I'll use LPG on any/all our vehicles until I die.

If I'm not mistaken, I believe the tech savvy Germans offer LPG on their "high end" vehicles directly from the factory.

But alas backward Thailand (and its ignorant oligarchy) wants to discourage, and or end LPG use. Would these ideas be for personal gain? HUMNNNNNN. TIT... so my guess is YES.

[Robby nz]

Silly idea to increase the tax and therefor the price of a fuel that is used in a fair proportion of heavy transport and most buses.

It is only going to increase the cost of cartage of goods around the country both to and from ports and manufacturers and these costs will be passed on to the end user. It will also mean the cost of bus travel will have to rise.

The alternative in most cases is diesel, particularly in buses and as gas is by far the cleaner fuel its use should be encouraged not discouraged by taxation.

If they want extra revenue tax petrol which is mostly used in private cars.