Tax measures for chemicals used in agriculture aiming to Sustainable Agriculture

Abstract

The agricultural sector has driven Thailand's economy, resulting to one of the world's most important sources of food and agricultural products. Due to global changes, which is caused by human activities. In particular, the use of high-intense chemicals and their severe toxicity are important factors. Chemicals are used for various purposes, one of which is used in agriculture. This is because chemicals are considered innovations resulting from the development of agricultural technology that can increase the quantity, quality, and appearance of agricultural products, resulting in the creation of added value for the agricultural industry and business. However, if chemicals are used in quantities that are higher than necessary or chemicals with high concentrations that result in high hazards, the focus is on agriculture that reduces, abandons, and ends the use of chemicals. Therefore, government policies and supporting mechanisms play an important role in driving and enhancing agricultural capabilities. This article is a study and demonstration of a fiscal policy tool, namely the collection of taxes on chemicals used in agriculture. Therefore, the history of chemical use in the agricultural sector in Thailand, the impacts that have occurred, and the approach to controlling chemical use have been discussed to demonstrate the importance of using fiscal policy tools or chemical taxes used in agriculture, as well as case studies from other countries. Particularly focusing on this article is the initiative approach and the forecast of taxes for chemicals used in agriculture that can be collected to reflect the positive impacts that will occur, including policy recommendations that the government and related agencies can apply to create beneficial results and be able to raise the potential of the agricultural sector to a higher level. Key findings include that the determination of agricultural chemical tax rates in Thailand should consider crucial factors such as production structures, the concentration or hazard level of chemicals, the value of the chemicals, and their indirect impacts. This includes the need for government support in expanding the market for organic agricultural products, and the necessity of developing an up-to-date data system regarding currently used chemicals, their users, and distributors. Additionally, the use of fiscal policy tools should be encouraged; initially, this might involve providing funding or subsidies to support organic or chemical-free farming.