Thailand’s cabinet has approved a 3% cut in the excise tax on E85-compatible vehicles.
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Energy minister Wannarat Charnnukul said the rate will be lowered to 22%-32% from the current 25%-35%, a move aimed at promoting the use of E85 petrol, a blend of 85% ethanol and 15% petrol.
This is part of the government’s plan to raise the share of renewable energy consumption to 20% of overall fuel use by 2022 from 7% currently.
Wannarat said the cabinet also slashed an import tariff by 20% to 60% for 2,000 units of imported E85-powered vehicles a year and exempted the import tariff for an additional seven auto part items for cars that run on E85 fuel.
The new rates are expected to become effective by 1 January.
