The cabinet meeting on Tuesday 17, June 2008 has come to the following decision
Approval to increase civil work budget and advisory costs of Purple Line Rail Project Bang Yai- Bang Sue The cabinet approved an increase of the civil budget and advisory cost of the Purple Line Rail Project Bang Yai-Bang Sue which had been approved on October 2, 2007. The civil work budget is being increased from the original 31,217 million baht to 36,055 million baht and the expenses for advisory costs for civil work increased from the original 1,248 million baht to 1,296 million baht. This was proposed by the Ministry of Transportation.
Work process in accordance to cabinet approval on tax structure method to promote E 85
The cabinet acknowledgement the report of the Ministry of Industry summarizing the meeting with 11 car companies and the Ethanol Trade and Production Association to proceed with work in accordance to the cabinet approval on June 3, 2008 on the excise tax structure method to promote E 85. The report of the Ministry of Industry on the coordination with other related departments on this issue is as follows:
1. At the meeting was a discussion with 11 car companies on June 5, 2008. All the companies view that the government must set a clear direction on the energy of the country including the policy related to NGV, LPG, E10, E 20, E 85 and Bio-Diesel. In order to set the policy the Ministry of Energy and the Ministry of Finance must consider the impact on the motor vehicle industry. Moreover, related departments involved in these issues must coordinate together to finalize there views. The Ministry of Industry will bring recommendations from the automotive industry and the Ethanol Trade Production Association to discuss with other related departments in order to develop policy on automotive development to be in step with the country’s energy policy including the promotion of E 85. There will be a concrete decision on the promotion of the Ethanol industry of Thailand to respond to the world market later on.
2. Eight automotive companies including Toyota, Honda, Isuzu, Mitsubishi, Nissan Suzuki, Mercedes-Benz and BMW agree on the promotion of E 85 in accordance with the cabinet approval that is suitable for automotive development and will not impact pick-up truck and eco car production.
3. Three automotive companies including GM, Ford and Volvo believed that the government still hasn’t promoted Ethanol sufficiently to increase the benefit to the automotive companies that import vehicles that can run on E 85 in ways such as reducing tax, etc.
4. The summary of the meeting with the Ethanol Trade Production Association on June 6, 2008 is as follows:
4.1 Regarding the excise tax cut for E 85 vehicle parts, the Ethanol Trade Production Association will gather details related to the vehicle parts that will receive the tax cuts and a method for tax cuts and import tax cuts will be determined.
4.2 For excise tax cuts for E 85 the Ethanol Trade Production Association requested they be along the same lines as the percentage of Ethanol (mix in the gasoline) whereas E 85 with the mix 85 per cent of Ethanol will have a tax cut of 0.5528 per liter rather than 2.5795 baht per liter. This will create a large gap between gasoline prices and E 85 will be more attractive for people to use.
4.3 Truly support and promote the production and trade of Ethanol.
4.3.1 Establish the Ethanol prices to be in accordance with the cost of production. The suitable price of Ethanol will be about 20 baht per liter but the referred price by the Minister of Energy is currently 16-17 baht per liter.
4.3.2 Presently Ethanol is produce only sell for oil trade operation in accordance with Article 7 where the price will be lower than the Minister of Energy’s price because the requirement of E 85 still quite low. It should be free trade for Ethanol.
4.3.3 Left over Ethanol exports still have a limitation on gathering various Ethanol producers to have enough so they can gain from exports ( if they export only a small amount they will not gain anything). Presently there are no rules and regulations from the Excise Department regarding these issues.
5. The government departments related to this includes the Ministry of Finance, Ministry of Industry, Ministry of Energy Ministry of Natural Resources and Environment. They have organized a meeting to discuss tax reductions for E 85 in order to prepare the draft of the Ministry of Finance to propose to the cabinet which will include 3 parts to come to a concrete outcome: the announcement of the Ministry of Finance on the tax free status for importing E 85 automotive parts, the announcement of the Ministry of Finance on excise tax reduction of E 85 cars, and the announcement of the Ministry of Finance on excise tax reduction for E 85. The Ministry of Finance will also establish E 85 standards and set up an E 85 price structure.
--Cabinet Meeting (Samak Sundaravej) June 17, 2008--
Approval to increase civil work budget and advisory costs of Purple Line Rail Project Bang Yai- Bang Sue The cabinet approved an increase of the civil budget and advisory cost of the Purple Line Rail Project Bang Yai-Bang Sue which had been approved on October 2, 2007. The civil work budget is being increased from the original 31,217 million baht to 36,055 million baht and the expenses for advisory costs for civil work increased from the original 1,248 million baht to 1,296 million baht. This was proposed by the Ministry of Transportation.
Work process in accordance to cabinet approval on tax structure method to promote E 85
The cabinet acknowledgement the report of the Ministry of Industry summarizing the meeting with 11 car companies and the Ethanol Trade and Production Association to proceed with work in accordance to the cabinet approval on June 3, 2008 on the excise tax structure method to promote E 85. The report of the Ministry of Industry on the coordination with other related departments on this issue is as follows:
1. At the meeting was a discussion with 11 car companies on June 5, 2008. All the companies view that the government must set a clear direction on the energy of the country including the policy related to NGV, LPG, E10, E 20, E 85 and Bio-Diesel. In order to set the policy the Ministry of Energy and the Ministry of Finance must consider the impact on the motor vehicle industry. Moreover, related departments involved in these issues must coordinate together to finalize there views. The Ministry of Industry will bring recommendations from the automotive industry and the Ethanol Trade Production Association to discuss with other related departments in order to develop policy on automotive development to be in step with the country’s energy policy including the promotion of E 85. There will be a concrete decision on the promotion of the Ethanol industry of Thailand to respond to the world market later on.
2. Eight automotive companies including Toyota, Honda, Isuzu, Mitsubishi, Nissan Suzuki, Mercedes-Benz and BMW agree on the promotion of E 85 in accordance with the cabinet approval that is suitable for automotive development and will not impact pick-up truck and eco car production.
3. Three automotive companies including GM, Ford and Volvo believed that the government still hasn’t promoted Ethanol sufficiently to increase the benefit to the automotive companies that import vehicles that can run on E 85 in ways such as reducing tax, etc.
4. The summary of the meeting with the Ethanol Trade Production Association on June 6, 2008 is as follows:
4.1 Regarding the excise tax cut for E 85 vehicle parts, the Ethanol Trade Production Association will gather details related to the vehicle parts that will receive the tax cuts and a method for tax cuts and import tax cuts will be determined.
4.2 For excise tax cuts for E 85 the Ethanol Trade Production Association requested they be along the same lines as the percentage of Ethanol (mix in the gasoline) whereas E 85 with the mix 85 per cent of Ethanol will have a tax cut of 0.5528 per liter rather than 2.5795 baht per liter. This will create a large gap between gasoline prices and E 85 will be more attractive for people to use.
4.3 Truly support and promote the production and trade of Ethanol.
4.3.1 Establish the Ethanol prices to be in accordance with the cost of production. The suitable price of Ethanol will be about 20 baht per liter but the referred price by the Minister of Energy is currently 16-17 baht per liter.
4.3.2 Presently Ethanol is produce only sell for oil trade operation in accordance with Article 7 where the price will be lower than the Minister of Energy’s price because the requirement of E 85 still quite low. It should be free trade for Ethanol.
4.3.3 Left over Ethanol exports still have a limitation on gathering various Ethanol producers to have enough so they can gain from exports ( if they export only a small amount they will not gain anything). Presently there are no rules and regulations from the Excise Department regarding these issues.
5. The government departments related to this includes the Ministry of Finance, Ministry of Industry, Ministry of Energy Ministry of Natural Resources and Environment. They have organized a meeting to discuss tax reductions for E 85 in order to prepare the draft of the Ministry of Finance to propose to the cabinet which will include 3 parts to come to a concrete outcome: the announcement of the Ministry of Finance on the tax free status for importing E 85 automotive parts, the announcement of the Ministry of Finance on excise tax reduction of E 85 cars, and the announcement of the Ministry of Finance on excise tax reduction for E 85. The Ministry of Finance will also establish E 85 standards and set up an E 85 price structure.
--Cabinet Meeting (Samak Sundaravej) June 17, 2008--