June 4, 2008
Bangkok - Suwit Khunkitti, Deputy PM and Industry Minister, defended the cabinet’s resolution to slash the tax on the E85 gasohol, saying it would not affect the eco-car market.
The cabinet yesterday agreed to cut the tax on the E85 gasohol from 3.6850 to 2.5795 baht per litre.
The so-called gasohol is 85% ethanol-blended gasoline.
Last year, Thailand announced tax breaks for companies that produce eco-cars here. Although it has no national automaker, foreign companies are using the kingdom as part of their regional production bases.
Suwit also said the industry ministry would propose its ethanol production plan to the government.
This is to serve the rising demand when the cars running on the E85 are launched into the market.
He believed Thailand’s ethanol capacity would surely serve its demand as there are currently eleven ethanol plants in Thailand.
However, Suwit disagreed to the cancellation of the use of gasoline 91 and 95 as they could be choices for consumers.
