Tax measures for reducing global warming in Thailand

Tax measures for reducing global warming in Thailand

         The current global warming problem is caused by the rising temperature of the earth. The main cause of this problem is the greenhouse gasses, which prevent some of the heat in the atmosphere from being released into space. However, as the world’s population is increasing rapidly, more resources are being used to meet their growing needs and demands.

         The effects of energy consumption have resulted in a gradual buildup of greenhouse gasses in the atmosphere, causing a gradual rise of global temperature, which is known as global warming.

         Because people are concerned about the potential impact of the environmental problems, many countries have introduced preventive measures to mitigate the potential impact in the future. Therefore, some governments have introduced a tax measure called a “carbon tax” to incentivize reductions in emissions of greenhouse gasses, particularly carbon dioxide, the main component of greenhouse gasses.

         Thailand has not introduced a carbon tax measure yet because Thailand is not prepared for the measurement of greenhouse gas and carbon dioxide emissions. Currently, the government has drafted the Environmental Fiscal Measures Act, which will provide the government with fiscal tools such as taxes, fees, and other measures to address environmental issues. The carbon taxation in Thailand may be implemented in three potential approaches, as follows:

1.  Tax collection based on electricity consumption;

2.  Tax collection based on fuel consumption;

3.  Tax collection based on carbon dioxide emissions directly from the source of production.

To incentivize people’s participation in reducing global warming, the government has implemented tax measures to promote voluntary emission reduction projects. The companies and juristic persons participating in the projects will receive an exemption on corporate income tax.