Bangkok: Sudarat Keyuraphan has called on the government to exempt fuel from excise tax and VAT to alleviate the burden of high fuel prices on the public. She suggests that fuel prices could be reduced by 10 baht per liter if these exemptions are coupled with partial subsidies from the Fuel Fund.

According to Thai News Agency, Sudarat has expressed her concerns over the rising oil prices, which are causing significant hardship for the public. The government is currently evaluating options to either reduce the excise tax or utilize a fund to subsidize the price difference of oil. However, Sudarat proposes a combination of both measures. She warns that excessive reliance on the Oil Fund could lead to a debt burden, as the government's borrowing capacity is nearly at its limit.

Sudarat emphasizes that using the Oil Fund to absorb high oil prices could result in the public continuing to bear the burden even after prices decrease, as they would need to repay the negative balance in the fund. She advocates for temporarily waiving the excise tax of almost 7 baht per liter during the crisis, as the current reduction of only 1 baht is insufficient to ease the public's financial strain.

Additionally, Sudarat suggests abolishing the Value Added Tax (VAT) to further reduce gasoline prices by 10 baht per liter. She acknowledges the government's concerns about potential revenue shortfalls and advises the Prime Minister to display courage by cutting non-essential expenditures across all ministries.

In response to the proposed tax exemptions, the government has directed ministries to reduce non-essential expenditures, particularly in construction budgets, including road and large-scale building projects, which cost up to 100 billion baht annually. This move aims to align overall expenditures with the decreased government revenue resulting from the fuel tax exemptions.