Budget airlines are appealing to the Finance Ministry for assistance in cutting the excise tax on jet fuel to alleviate costs and support the recovery of the airline industry. Following discussions with representatives of low-cost carriers, Deputy Finance Minister Julapun Amornvivat stated that the airlines are keen on backing government efforts to boost tourism.
Post-pandemic, these carriers are striving to strengthen their operations and are emphasizing the importance of reducing the excise tax on jet fuel. The Finance Ministry is contemplating their requests but will first consult with the Energy Policy Committee before making any changes. Additionally, the Ministry suggested that budget airlines should explore other forms of government aid, like loans, to enhance liquidity. Mr. Julapun highlighted the pressing issue of high domestic airfares and stressed the need for low-cost carriers to propose practical solutions, such as reducing jet fuel taxes and ensuring that these reductions benefit consumers.
By demonstrating how a decrease in excise tax can lead to lower ticket prices for passengers, the airlines can improve the chances of their proposal gaining approval from pertinent authorities and the cabinet. Amidst the challenges faced by the aviation sector during the pandemic, the government had previously reduced the excise tax on domestic jet fuel from its standard rate to support domestic airlines and stimulate domestic tourism.