Thailand's cabinet on Tuesday agreed to levy a carbon tax of 200 baht ($5.88) per ton of carbon emissions, a deputy finance minister said, as part of the country's efforts to reduce greenhouse gas emissions.

The tax, however, will be included in the existing oil tax and will not affect the retail price of oil and oil products, Paopoom Rojanasakul said in a statement.

The measure is a change in the internal structure of the excise tax that calculates the carbon price embedded in the oil tax, he said.

"The carbon price setting will not affect the cost of the industrial sector and will not affect retail oil prices," he added.

The move seeks to help change consumer behaviour to be environmentally friendly and assist in international trade negotiations that prioritise environmental impacts, Paopoom said.

Thailand has targeted carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065, while the automotive and oil industries are the source of 70% of carbon emissions, he said.

Products to be subject to the carbon price mechanism include gasoline, gasohol, kerosene, jet fuel, diesel biodiesel, liquid petroleum gas and fuel oil, Paopoom said.

by Reuters