The Excise Department expects a comprehensive tax package, including excise tax on electric vehicles (EVs); motorcycles based on carbon dioxide emissions; and high-sodium and trans-fat foods, to seek cabinet approval by the end of this year.
The tax measure is aimed at supporting targeted S-curve industries, said Patchara Anuntasilpa, director-general of the Excise Department.
The excise tax on foods containing high sodium and trans fat is meant to help people avoid health problems, Mr Patchara said.
Tax incentives for EVs are meant to draw EV and parts manufacturers here, particularly battery makers, he said, adding that batteries are the heart of EV manufacturing.
"We want to use excise tax in a way that motivates EVs to be produced and encourages technology transfer in Thailand," Mr Patchara said. "The package is expected to reach a conclusion by December in order to be ready to seek approval within the current government regime."
The Excise Department has formed a committee comprising representatives from related parties such as the Industry Ministry, the Commerce Ministry and auto manufacturers to work out the tax measures for EVs.
Mr Patchara said foods with high sodium and saturated fat content are the department's next target after a tax on sugary drinks.
In practice, the department will offer a five-year relief period for local manufacturers to reduce salt and trans fat in foods, he said, noting the policy will offer not only a stick but also a carrot to manufacturers who manage to cut levels of salt and saturated fat within five years.
The tax-collecting agency will restructure suggested retail price after finding that manufacturers of some products claim low retail prices to understate tax bills, Mr Patchara said.
The current excise tax uses the suggested retail price to replace the ex-factory price and cost, insurance and freight (CIF) value as the base for excise tax computation. The change was aimed at creating a fairer system for manufacturers and importers after some businesses were found to have exploited the CIF system.
Mr Patchara said the Excise Department will spend a few months considering whether manufacturers can declare a suggested retail price to reflect the market price.
He gave the example of a bottle of imported wine: its suggested retail price declared to the Excise Department could be a mere 200 baht, though its shelf price amounts to 5,000 baht.
To probe goods costs, the department has set up a unit to take responsibility for the task and conduct post audits to stem tax loopholes, Mr Patchara said.
The Excise Department garnered 26.8 billion baht for the first month of fiscal 2019, missing its target by 27% and recording a 33% decline from a year earlier. Its fiscal 2019 revenue target is set at 600 billion baht.
