Bangkok:According to Thai News Agency, the Chairman of the National Economic and Social Development Council (NESDC) supports the Ministry of Finance's decision to halt universal diesel subsidies. The Chairman argues that providing direct assistance to farmers would be a more effective strategy.

The ongoing economic discussion includes proposals to reduce the excise tax on diesel fuel by 5 baht per liter to help the public cope with high living costs due to rising fuel prices. However, the Ministry of Finance, led by Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas, is focusing on using various economic tools to manage fuel prices. Any reduction in excise tax is aimed at benefiting farmers primarily.

Dr. Supavud Saichue, NESDC Chairman, expressed his support for this approach on a recent broadcast, explaining that excise tax is typically imposed on goods with wide-ranging impacts. Given the current geopolitical climate affecting Thailand, he believes price controls should remain in place. He suggests that the Oil Fund should be used to maintain oil price stability, despite it incurring debt during high-price periods.

Dr. Supavud emphasized the importance of following the 3Ts principle‚timely, targeted, and temporary‚in short-term mitigation strategies to avoid burdening the government long-term. He identified farmers as the most vulnerable group impacted by rising fuel prices, advocating for targeted measures to assist them, which would be more cost-effective than blanket tax reductions.

He further cautioned about fiscal discipline, noting Thailand's budget deficit and rising public debt-to-GDP ratio. Dr. Supavud warned against borrowing to offset tax cuts, highlighting the political difficulty in reversing tax reductions once implemented, as seen with the longstanding Value Added Tax (VAT) rate.

In conclusion, he stressed that managing diesel prices should focus on those most affected, cautioning against broad measures that could lead to negative consequences.