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Legal Update

Six for Six - Plans to Reduce Burdens During Economic Crisis

9 September 2008
Mayer Brown JSM Legal Update


The Government has announced six measures to be carried out for six months to ease economic burdens upon Thai people, especially middle and low-income earners, in the midst of increasing prices of oil and food in Thailand.

Full Update

The Cabinet approved, on 15 July 2008, the six measures for six months scheme, which was proposed by Mr Surapong Suebwonglee (the Deputy Prime Minister and the Minister of Finance). Details of the economic package are as follows:


To cut excise tax on oil to lower oil prices


1.1 Gasohol 91, Gasohol 95, E10, E20 and E85 will have the excise tax reduced by 3.30 baht per litre.


1.2 Diesel oil is to have the excise tax reduced 2.30 baht per litre.


To suspend the proposed price increase of liquefied petroleum gas (LPG) for household use.




To cut household water bills by offering free usage for up to 50 cubic metres per month.

The government will absorb household water costs, reducing bills per household by about 213 baht per month in the metropolitan areas and 176 baht a month in provincial areas.


To reduce electricity bill expenses for households using less than 150 units per month.

The government will reduce the cost in two ways a) for households that use less than 80 units of electricity per month, the government will cover all costs b) for households that use more than 80 units of electricity per month the government will cover half the cost. This measure will reduce costs by 120 to 200 baht per household.


To provide free bus rides on 800 ordinary buses operated by the state run Bangkok Mass Transit Authority and on 73 routes within Bangkok and the outlying areas.


To provide free third class railway carriage on all routes nationwide which will provide service to about 16 million people during the six months.

These measures, which were implemented on 1 August 2008 (except for the first measure which started on 25 July 2008), will continue until 31 January 2009. The government reported that the economic assistance would cost it around Bt46 billion (US$1.4 billion) in lost revenues.


In the short term, the six measures aim to alleviate the plight of the Thai people and achieve the country's fiscal targets by encouraging consumer consumption. However, the government hopes that these measures will also encourage energy conservation and promote the use of alternative energy in the long run.

For further information, please contact:
Utain Vichaipairojwong (
Punnaros Tintanorm (

To learn more about our Bangkok office, Energy practice, Environment practice and Tax practice.

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