Thailand approves carbon tax of THB 200/t on petroleum products

On January 21, 2025, the Thai Cabinet approved the principles presented in a drafted Ministry of Finance Ordinance as proposed by the Department of Goods Taxation of the Ministry of Finance. The measure focuses on the introduction of carbon pricing mechanism, in which a carbon tax is imposed on petroleum and petroleum products such as gasoline, diesel, and liquefied petroleum gas (LPG). The carbon tax rate has been set at THB 200 (approximately USD 5.90) per ton of carbon equivalent.