Water Tax and Water Fee for Agriculture Development and Drought Mitigation

Abstract

Drought impacts national water resources and national economic development, continually affecting Thailand despite governmental budgeting to address the problem, especially for agricultural land, with the highest water use, which cannot access the public water supply. The government has a responsibility to provide a public water supply benefiting local residents as well as building public water supplies or services that would entail administrative, water supply, operational, and maintenance costs. An alternative method, water pricing, would improve water management, drought mitigation, and governmental revenue. Agricultural water pricing challenges the government through conflicts with agricultural residents by levying taxes and fees for water use in the farming sector. To levy agricultural water taxes and fees equitably, reducing conflicts with farmers, the consent of farmers for levying should be obtained.

            An international comparative legal study indicated that in other agricultural regions such as the People's Republic of China and the state of California in the United States of America (USA), levying taxes and fees on public utility water, natural water, and agriculture sector water use developed agricultural economies with high gross domestic products (GDPs) and agricultural development with efficient water use for technological farming.

            In addition, water tax and fee structures were studied to be enabled by enacting new water tax legislation for agriculture water taxation and amending the Water Resources Act B.E. 2561 (2018; The Act) by stipulating more detailed provisions relating to agricultural water fee collection. Both laws should comprise provisions on agricultural water taxation and fee structures, permitting local authorities to collect agricultural water taxes and fees, allowing residents to participate in water management, and costs requiring taxation revenue to compensate for public spending.