“Sustainable development is the pathway to the future we want for all. It offers a framework to generate economic growth, achieve social justice, exercise environmental stewardship and strengthen governance.” Ban Ki-moon. With an expanded Gross Domestic Product (GDP) figure of 3.2% in Q1 2016 compared to the 2.8% in Q4 2015, it is hard to imagine that Thailand was one of the poorest countries following WWII (Greg, J 2016). Since 1952, Thailand has shown remarkable economic growth and has one of the fastest growing economies of all developing countries. (Greg, J 2016) Between 1960 to 1996, the economy grew at an average rate of 7.5% per annum, but slowed down to 5% during the Asian crisis (Greg, J 2016). Thailand is showing remarkable progress in socio-economic development with improved levels of GDP, life expectancy, literacy and levels of employment. (World bank, 2017) This allowed the country to move from a low income to an upper income country in less than a generation (World bank, 2017). The key driver of poverty reduction in Thailand is economic growth, which is defined as “the increase in an economy’s capacity to produce goods and service over a long period of time” (Hugh & Neuland, p.131). This means that, a country increases the quality and/or quantity of its factors of production, such as labour and capital, with the limited resources available; improve production techniques and an increased output for the growing demand (Hugh & Neuland p133). The Organisation for Economic Co-operation and Development (OECD) defines sustainability where future generations can meet their own needs and are not compromised by decisions and actions of the human population today, us. By eliminating negative externalities that are responsible for natural resource depletion and environmental degradation, sustainable development can be attained (Chansam, S 2013, p. 512). Thailand is one of the original members of the Association of Southeast Asian Nations (ASEAN) that was established in 1967. The aim of ASEAN is to accelerate economic growth, social progress and cultural development amongst its members. His Majesty King Bhumibol Adulyadeej of Thailand has been promoting sustainable farming, since the 1950’s, and has initiated the concept of having a Sufficiency Economy. This allowed for his country to follow a path of great economic growth and development. Did all this social-economic development come at a price to the environment? Will Thailand be able to grow and develop at a pace that is sustainable? This paper examines the characteristics of a developing country, economic growth impact on sustainability and the trade-off for this high growth rate, but at in terms of The Progressive Carbon Tax: Through the Ability to Pay Doctrine of Taxable Income? The research and hypothesis in this paper aims to prove that a Progressive Value Added Tax/Goods and Services Tax (Fiscal Policy) as a Tool of Inflation Targeting can make the Carbon Tax progressive in nature and thus providing us with a tool that can provide Thailand and other countries with a tax and economic instrument to achieve high economic growth within sustainable development guidelines as argued in the thesis. (Altamirano, 2016) The research proves a Progressive Carbon Tax as an offshoot of a Progressive GST / VAT through the Ability to Pay Doctrine of Taxable Income. The paper proves that a relative price increase of 4.79% per annum (carbon tax content) when disclosed in the price tag or menu, and through a GST / VAT Tax Return can result in progressive rates of the carbon tax of 0%, 10%, 20% or 30%.