Bangkok governor Chadchart Sittipunt has proposed amendments to the Bangkok Metropolitan Administration (BMA) Act to allow the city to levy new local taxes on cigarettes, hotels and fuel.
The move is aimed at strengthening the long-term fiscal capacity of the capital.
Mr Chadchart said the proposal has been submitted to the Interior Ministry and will require approval from the cabinet and parliament before it can take effect.
Under the proposed amendments to the Bangkok Metropolitan Administration Act of 1985, the BMA would be authorised to collect three additional taxes: a tobacco tax of 10 satang per cigarette, a 3% tax on hotel and accommodation room charges, and an increase in the local fuel tax from five satang to 10 satang per litre.
The amendments are intended to bring the BMA Act into line with the Decentralisation Plan and Procedures Act of 1999, which allows local administrative organisations to impose certain taxes and fees.
However, the Energy Ministry has reportedly objected to raising the fuel tax at this stage, meaning the existing rate of five satang per litre is likely to remain unchanged even if the legislation is approved.
While provincial administrative organisations elsewhere in the country already collect tobacco and hotel taxes, Bangkok currently lacks the legal authority to do so.
City officials estimate the original proposal could have generated an additional 1.9 billion baht in annual revenue. With the fuel tax increase unlikely to proceed, the projected revenue is expected to be lower.
Officials said the proposed hotel tax alone could generate about 1 billion baht a year, while revenue from the cigarette tax has yet to be estimated as it will depend on consumption levels.
According to the BMA, Bangkok has budgeted total revenue of 92 billion baht for the current fiscal year ending Sept 30, including 23.4 billion baht from taxes and fees collected directly by the city, such as land and building taxes, signboard taxes and other local levies.
From Oct 1, 2025, to June 26 this year, the city collected more than 20.28 billion baht, including 11.19 billion baht from land and building taxes and 1.15 billion baht from signboard taxes.
The BMA also plans to improve the collection of existing revenue.
