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Praiphon warns of fiscal risks from 10 baht oil price cut

Praiphon warns of fiscal risks from 10 baht oil price cut

Thansettakij•Economy•32m ago

Reader Briefing

Academic Praiphon Kumsap warns that meeting the NPPh demand to reduce oil prices by 10 baht would cause severe government revenue losses.

  • •The People's Revolutionary Front to Protect the Land (NPPh) is demanding a 10 baht reduction in oil prices.
  • •Praiphon Kumsap states a 10 baht reduction is possible if the government cancels excise taxes, municipal taxes, and VAT, and adjusts fuel fund subsidies.
  • •Such a price cut could cause the government to lose approximately 1,000 million baht per day or 30,000 million baht per month.
  • •Praiphon Kumsap suggests targeted assistance via coupons for necessary groups like transport trucks instead of a general price cut.

Overview

  • •The People's Revolutionary Front to Protect the Land (NPPh) has demanded that the government reduce oil prices by 10 baht.
  • •Praiphon Kumsap states that reducing the price by 10 baht could be achieved by canceling excise taxes (saving over 6 baht), municipal taxes (saving 60-70 satang), and VAT (saving approximately 2 baht), alongside fuel fund adjustments.
  • •Praiphon Kumsap estimates the government would lose approximately 1,000 million baht daily and 30,000 million baht monthly if these taxes were cancelled.
  • •Praiphon Kumsap warns that such losses could lead to the government running out of funds, reducing police and military hiring, and halting infrastructure projects like road construction and double-track railways.
  • •Praiphon Kumsap argues that further reducing refinery margins could cause refineries to stop operations due to losses, forcing the government to import finished oil.
  • •Praiphon Kumsap notes that reducing marketing margins below the current 2 baht would make gas stations unable to operate, leading to closures and longer queues for citizens.
  • •Praiphon Kumsap proposes providing targeted aid through fuel coupons for essential groups such as transport trucks instead of a blanket price reduction.

Full article content is available on the original source.

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Source: Thansettakij (Original)

Key Quotes

Praiphon Kumsap
"When a large amount of income disappears, the government may need to hire fewer police officers, while soldiers may have to be limited."
เมื่อรายได้หายไปจำนวนมาก รัฐบาลก็อาจมีความจำเป็นที่จะต้องจ้างตำรวจน้อยลง ส่วนทหารก็อาจจะต้องจำกัด

Key Entities

Person

Praiphon Kumsap(พรายพล คุ้มทรัพย์)
An independent energy academic and former Dean of the Faculty of Economics at Thammasat University.

Organization

People's Revolutionary Front to Protect the Land(กลุ่มแนวร่วมปฏิวัติประชาชนปกป้องแผ่นดิน)
A group demanding that the government reduce oil prices by 10 baht.
Thammasat University(มหาวิทยาลัยธรรมศาสตร์)ℹ️
The institution where Praiphon Kumsap previously served as Dean of the Faculty of Economics.
Ministry of Energy(กระทรวงพลังงาน)ℹ️
The government body that has already taken action to reduce oil refinery margins.
Thansettakij(ฐานเศรษฐกิจ)
The media outlet to which Praiphon Kumsap provided his analysis.
Fuel Fund(กองทุนน้ำมันเชื้อเพลิง)
The fund mentioned as a source for price compensation adjustments.