Thailand Decided to Extend Tax Cut for Jet Fuel Until 2022

Thai Airlines

Photo: Photo: Wong Chi Lam

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Thailand extends tax cuts for aircraft fuel until 31st December 2021 to help airlines stay afloat as travel remains decimated.

The tax for jet fuel was reduced in February last year – from 4.726 baht/liter ($0.15/l) to just 0.2 baht/liter ($0.0064/l) to aid the airline industry hit hard by the pandemic. The reduction had to expire at the beginning of fall 2020 but was extended until April this year as the pandemic did not end.

Tourism accounts for nearly 20% of the nation’s economy. Therefore, airlines are of critical importance for that sector. The government deems it necessary to invest in airline operations as they could facilitate recovery through boosting tourism. The government is also committed to providing Covid-19 vaccines to cover at least 60% of the population to reopen the country for international tourists by October 2021.

Source: Bangkok Post