Thailand to develop excise tax framework for SAF
The Excise Department is working on an excise tax framework for sustainable aviation fuel (SAF) to position Thailand as a low-carbon aviation hub in ASEAN, Deputy Finance Minister Paopoom Rojanasakul said on Friday.
His remark came after leading the department executives to oversee PTT Global Chemical’s SAF production plant in Rayong province.
The Excise Department is currently defining SAF’s qualifications, specifications and tax rates to encourage its development and production expansion, he said, adding that SAF would have a more attractive tax rate than conventional Jet A-1 fuel.
Paopoom said SAF, a blend of biofuel and aviation fuel, can reduce carbon dioxide emissions by up to 80% compared to traditional jet fuel, supporting Thailand’s goal of achieving net-zero carbon emissions by 2050.
Thailand’s SAF production meets the International Sustainability and Carbon Certification – Carbon Offsetting and Reduction Scheme for International Aviation (ISCC CORSIA) standard, he added.
He expects Thailand’s SAF production would reach 10 million litres per year to support both domestic and international flights. He confirmed that the production will be increased further to support the aviation industry demand for renewable energy.
“This marks an important step in developing a comprehensive distribution network across the region and setting new standards for the environmentally friendly aviation industry,” he said.
Paopoom emphasised that the Excise Department is ready to support the production of low-carbon and eco-friendly fuel to boost the value of agricultural materials and promote waste reuse.
The department is committed to boost Thailand’s bioenergy production to promote the country as a low-carbon aviation hub in the ASEAN region, he added.
