Thailand : PM declares clear policy to promote E85 gasohol consumption

BANGKOK : August 14, 2008 – Prime Minister Samak Sundaravej on Thursday announced the government would reduce an import tariff on E85 gasohol-driven vehicles soon as part of its efforts to actively promote alternative fuel consumption.



He said his government would declare a clear policy on tax reduction for vehicles using E85 gasohol, which is the 85 per cent ethanol-blended gasoline, soon although carmakers, particularly those from Japan, had disagreed with it.

The continued surge in global oil prices had pressed Thailand, which is one of major oil consumers and importers, to find an alternative choice to reduce impacts.

One of the best ways out is to promote the consumption of alternative energy including E20 and E85 gasohol, natural gas for vehicles (NGV), and other alternative fuels.

As for E85 gasohol-driven vehicles, Mr. Samak said, the government would reduce both excise and customs taxes with details of the tax cut being prepared by the Finance Ministry.

The import tariff cut would be offered for only one year and half since it is expected Asian automotive manufacturers would be able to adjust and produce the vehicles after that period.

He said car distributors entitled to import E85-powered vehicles with specially lowered tariffs are also required to come up with a plan to produce and assemble such vehicles in Thailand.

PTT president Prasert Bunsumpun said that the degree of success of the policy on E85 gasohol consumption promotion would become depended on the government's decision on the extent of tax reduction for imported vehicles and E85 gasohol.

He said the premier had declared a clear policy to promote E85 gasohol consumption because it would make farmers earn more income by growing crops of plants produced commercially to produce biofuels.

[Source : Thai News Agencies]