PUBLISHED : 21 Dec 2023 at 13:34
Transport Minister Suriya Jungrungreangkit plans to push for an increase in excise tax on petrol in Greater Bangkok to encourage motorists to shift towards public transport.
Mr Suriya said on Thursday that a potential tax increase of 0.50 baht per litre of petrol would motivate car drivers to opt for electric trains, where fares have already been reduced to 20 baht per trip on some routes.
He said the 20-baht flat fare had already been imposed on Bangkok’s Red and Purple electric train lines, and the government is still determined to extend this flat rate to all electric railways within the next two years. The 20-baht flat fare was part of the campaign policy of the coalition-core Pheu Thai Party.
The government would have to subsidise the flat fare to secure the revenue of electric train operators holding concessions with the state, Mr Suriya said.
According to the minister, the subsidy, estimated at 7 billion to 8 billion baht annually, could be funded by the increment of the excise tax on petrol in Greater Bangkok. It may include allocations from the government budget and contributions from the Energy Conservation and Promotion Fund and the Oil Fuel Fund, he said.
The electric train fare subsidy, coupled with funding from an energy conservation fund, is a practical model implemented in many other countries as electric trains are an energy-efficient mode of transportation, he added.
Suriya: Car drivers urged to switch to public transport