Introducing the Diamond of Smart Excise strategy: reforming revenue while caring for society.

"Since taking office, I have instructed the Excise Department to utilize a strategic approach..." Diamond of Smart Excise operates on the principle of "Exercise Excise," which means demonstrating the intention to work seriously and achieve practical results in line with the government's urgent policies or "Quick Big Wins."

The Excise Department is one of the main agencies responsible for collecting significant tax revenue for the country. In addition to its primary mission of generating revenue for the state, it also utilizes tax mechanisms to promote fairness, transparency, and contribute to economic, social, and environmental development.

Dr. Pornchai Thirawet, Director-General of the Excise Department Took office on October 1, 2568. Gave a special interview. bank finance The Excise Department is a key tax revenue collection agency for the country. Its important legal missions include managing the collection of excise taxes as government revenue and inspecting, preventing, and suppressing violations of excise tax laws. Going forward, its policy direction will be driven under the main strategy of "Diamond of Smart Excise".

“Since taking office, I have instructed the Excise Department to utilize the Diamond of Smart Excise strategy, based on the principle of Exercise Excise. This signifies a commitment to working seriously and achieving practical results, in line with the government's urgent policies or Quick Big Wins.”

Chu Diamond of Smart Excise
Ready to accept the policy. Quick Big Win

Dr. Pornchai stated that the Diamond of Smart Excise strategy is based on five key principles: well-being, transparency, fairness, accuracy, and simplicity. This builds upon the Smart Excise strategy that the department has continuously implemented, and comprises:

1. 1. Well-being in society The focus is on operations aimed at promoting overall social well-being, which is the ultimate goal of excise tax management, alongside government revenue collection.
   2. Visibility Transparency in the process requires cooperation between taxpayers and the department responsible for receiving tax payments.
   3. Fairness Fairness is a crucial factor that must be clearly established and must be fair to both parties: taxpayers and the department, which receives the tax payment.
   4. Accuracy In planning, analyzing, and collecting taxes, high-precision tools are used.
   5. Simplicity To provide peace of mind to businesses and consumers regarding transactions related to the department.

Furthermore, in response to the government's urgent Quick Big Win policy and to support the Diamond of Smart Excise initiative, the Excise Department has upgraded its operations by establishing the principle of "Excise is a Society of EXerCISE" or "Excise Exercise." This principle drives both society and the organization forward through discipline and professionalism, enabling personnel at all levels within the Excise Department to collectively propel the organization in the defined direction and achieve its goals. The focus is on two main areas:

Section 1: Jointly promoting excise tax policy (Excise Tax The focus is on controlling the consumption of undesirable or unhealthy substances and promoting consumer behavior that transitions towards economic, social, and environmental sustainability (ESG).

The second aspect is collaboration on human resource development and digital systems within the Excise Department. โดย

• • Personnel The Excise Department believes that its personnel are the driving force behind the discipline, knowledge, and professionalism that will lead the organization towards a smart tax system for a transparent and sustainable society. The department has a policy of developing its personnel to...

1. 1. 1. Intelligent EXerCISE refers to individuals who are knowledgeable, mindful, and intelligent, possessing creative thinking skills and the ability to adapt to change.
      2. Physical & Mindset Exercise refers to achieving holistic well-being encompassing physical, mental, social, and spiritual aspects. It promotes self-discipline, honesty, and ethical work practices for maximum efficiency in performing duties and for the benefit of the nation.

• • In terms of digital systems. This requires a valuable database, and the Ministry of Finance has provided a policy directive on data management, including the creation and use of data for planning and managing excise tax collection.
    • The application of technology to improve the efficiency of tax administration is aimed at streamlining and adapting to current circumstances.
    • Adopting digital systems and Big Data tools to expand the tax base.
    • Using a data lake to link data between organizations enhances the ability to store data comprehensively.
    • Encourage government agencies to exchange information that is useful for government revenue collection in order to strengthen fiscal stability.

“The Excise Department is committed to developing the organization into a high-potential digital entity, following the Diamond of Smart Excise strategy, especially in the Technology and Innovation-Driven dimension, to ensure that tax collection and public service are efficient, transparent, and truly meet the needs of the digital age.”

Moving forward with revenue structure reforms.
Use tax money to take care of society and the environment.

Dr. Pornchai stated that the Excise Department has begun restructuring the government's revenue collection system by adjusting the tax structure to suit the current economic context. Currently, they are studying tax measures that can be used in the future, including:

1. Expanding the tax base for goods that have a negative impact on the environment. To prepare for the upcoming Carbon Border Adjustment Mechanism (CBAM), scheduled to be implemented in 2569 for the European Union and in 2570 for the United Kingdom, as well as similar measures currently under consideration in several other countries.

2. Expanding the tax base for luxury goods or services. The principle behind limiting the consumption of luxury goods is to impose taxes to encourage responsible spending, create fairness in tax collection, and increase government revenue, while emphasizing that it does not negatively impact low-income earners. Examples include taxing the beauty industry or certain service sectors.

3. Providing tax incentives for environmentally friendly products. In the future, there will be a significant increase in environmentally friendly products that help reduce greenhouse gas emissions, such as sustainable aviation fuel (SAF), which Thailand plans to use in higher quantities, and other bio-based fuels. In managing tax collection, the Department needs to define product specifications to determine tax rates and establish rigorous and effective regulatory processes.

4. Salt tax. The department is in the process of proposing a method for taxing products based on sodium content, with the goal of reducing health problems caused by excessive sodium consumption. This is because Thais consume an average amount of sodium higher than the World Health Organization (WHO) recommend. Initially, the tax on sodium content will be considered for snack foods, as they are considered luxury items and not essential for daily life.

"Imposing excise taxes on high-sodium products is another social measure. It's a way to use excise taxes to sustainably change consumer behavior. However, we must consider the impact on consumers to minimize the impact on their cost of living, and also allow time for businesses to adapt to the impact on the industry."

5. Battery tax. The Excise Department has drafted a ministerial regulation to determine the excise tax rates for the Ministry of Finance to consider before submitting it to the Cabinet for approval. The content involves restructuring the tax system for batteries. Firstly, batteries will be categorized into primary (non-rechargeable) types, such as button batteries, air conditioner remote batteries, and flashlight batteries, and secondly, secondary (rechargeable) types, such as various rechargeable batteries, mobile phone batteries, power banks, and electric vehicle batteries. For secondary batteries, different rates will be determined based on efficiency, such as the number of charging cycles (life cycle) and electricity density.

6. Cigarette tax. The Excise Department is currently studying restructuring the cigarette tax and its potential impacts in order to achieve an appropriate cigarette tax structure. This includes both ad valorem taxes to reflect the principle of luxury, and quantity taxes to reflect the principle of health. A careful consideration of the impacts across all dimensions is necessary, including public health, tax revenue, the tobacco industry, and illegal cigarette consumption.

"In the past, the Excise Department has continuously studied restructuring the cigarette tax. It's been a saga, but I intend to finalize the cigarette tax restructuring during my term, establishing a single tax rate."

Dr. Pornchai stated that the department's revenue collection will be conducted in accordance with the medium-term fiscal policy and plan for fiscal years 2027-2030, which the Cabinet approved on November 18, 2025. Overall, the economy in 2026 is projected to grow by 1.2-2.2%, with a median value of 1.7%. The Thai economy in 2027 is projected to grow by 2.1-3.1%, with a median value of 2.6%.

The Excise Department's revenue estimate for fiscal year 2569 is 578,200 million baht, based on the economic assumptions and revenue collection base of fiscal year 2568. Meanwhile, the Excise Department's revenue estimate for fiscal year 2570 is 611,220 million baht, 33,020 million baht or 5.7% higher than the 2569 estimate. Key assumptions include economic growth and increased efficiency within the Excise Department.

"The department's challenge is implementing new tax policies that require raising public awareness and ensuring that they do not have an undue impact on both producers and consumers, thereby ensuring fairness for all parties, because the Excise Department is the agency that acts as a liaison between businesses and consumers."

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