After the “I give you 20 billions THB” (special allowance to 9 millions people) and a few weeks later “I take back 20 billions THB” (increase of excise taxes)… Abhisit is diving deeper into the Ridicule Ocean.
With a striking concept :
-the tax increase that you won’t feel… for one month
Bravo ! Let’s applaud our dashing (alleged) Prime Minister.
The Energy Ministry on Thursday has reduced petrol and diesel oil contribution to the Oil Fund by Bt2 per litre, with immediate effect, so that the higher excise taxes would not affect retail prices.
Energy Minister Wannarat Charn-nukul however said that the contribution cut would remain for only one month, and after that the retail prices will be gradually increased, presumably 60-70 satang for each increase. He added that if oil prices are on the upward trend after a month, the ministry will reconsider if the subsidy period would be longer than 1 month. (Nation)
I remind you that the Oil Fund was created after the huge subsidy decided by Thaksin in 2004… This little joke costed 100 billions THB ! Since then, a small “contribution” is taken on every liter of gasoline sold, to pay back the debt.
But with years, this Oil Fund became… itself a subsidy tool, like a cushion ! That’s the irony.
Therefore, the government can increase excise tax on gasoline, but meanwhile cut the contribution to the Oil Fund. Eventually, it’s of course exatly the same ! The hike is just replaced (for sometime) by debt.
Change with Abhisit ? Do you remember the motto ? Obama ? The Black Jesus and the Green Shoots and all the circus they’ve served us ?
Well… Now you know : Abhisit is following exactly the same policy -as far as energy is concerned- than Thaksin, Surayud (Junta), Samak and Somchai… all previous PM.
Subsidies. Subsidies. Hidden subsidies.
The issue is just too explosive… they are trapped.