Revenue from petroleum income tax Thailand 2011-10M 2022

In the first ten months of 2022, the revenue generated from petroleum income tax in Thailand amounted to around 55.4 billion Thai baht. Taxes from petroleum is one of the major sources of income for the Thai government, with value-added tax being the leading tax revenue source. Apart from petroleum income tax collected from domestic consumption, exports, and imports, state income from petroleum in Thailand is also collected through sales royalties.

The allocation of state petroleum royalties

The state is required to collect petroleum sales royalties from the corporations involved in petroleum production in Thailand. Since the process of petroleum production substantially affects the environment and the use of public areas, the state collects royalties as a form of rent. These royalties are mainly remitted to the state’s treasury but are also distributed to smaller state bodies such as subdistricts, municipalities, and provincial administrations nationwide. The largest proportion of royalties in Thailand is collected from natural gas, which contributes to more than half of the total collected petroleum royalties.

Petroleum production in Thailand

  Despite mainly being an importer of crude oil and petroleum products, Thailand is also focusing its resources on becoming self-reliant in terms of energy production. Petroleum resources in Thailand are found in both onshore and offshore locations with most of the country’s petroleum production wells located in the Gulf of Thailand. Domestic production of petroleum products in Thailand has been relatively stable, signaling a constant demand for this type of energy source.