Tax cut for new-car purchases in pipeline

[webfact]

Tax cut for new-car purchases in pipeline

By The Nation

 

 

The Cabinet will today (August 25) consider a proposal to cut tax on purchases of new cars as it discusses measures to boost the auto industry amid the Covid-19 crisis.

 

The tax cut will be proposed by Industry Ministry Suriya Juangroongruangkit following his meeting on Monday with Mitsubishi Motors executives at the Mitsubishi factory in Laem Chabang, Rayong province. 

 

Mitsubishi has said it accelerate its planned Bt20-billion investment in Thailand. The company will launch its first plug-in electric car – the Mitsubishi Outlander PHEV – in late 2020 or early 2021 in Thailand. The model will be the first Mitsubishi e-vehicle produced outside Japan, Suriya said after the meeting.

 

The Laem Chabang plant is the largest Mitsubishi factory outside Japan, exporting autos to 120 countries.

 

Suriya said Mitsubishi has recently expanded its Thailand-based production along with fellow Japanese manufacturer Nissan, which has cut production in other countries.

 

Meanwhile, China’s leading automaker Great Wall Motors in February bought the Thai factory of General Motors, which had earlier pulled out Thailand. The Chinese company will start renovating the production line in October for the launch of auto production early next year, according to Suriya.

 

Carmakers have suffered plummeting sales this year, but are optimistic demand will rebound next year.

 

The Industry Ministry plans to boost production of electric vehicles to 30 per cent of total auto produced in 2030. The target for electric cars, motorcycles and buses is part of the strategy to cut levels of hazardous PM2.5 air pollution that have plagued Thailand. Vehicle engines run on fossil fuels have been blamed for the high levels of PM2.5.

 

Source: https://www.nationthailand.com/auto/30393448

 

-- © Copyright The Nation Thailand 2020-08-25

 

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[Pattaya Spotter]

Some information on the scope of the tax cut would be useful.

[mtls2005]

4 minutes ago, Pattaya Spotter said:

Some information on the scope of the tax cut would be useful.

 

The last promotion (2011) might be used as a model?

 

I think it had a few "levels". And a fair amount of rules. First car, one time only, produciton levels, engine displacements. etc.

 

Vague recollection of 100,000 baht refund on a 600,000 baht localy manufactured vehicle (Vios). Maybe paid after one year.

 

~ 1.25 million people signed up back then.

 

 

 

 

[Pattaya Spotter]

25 minutes ago, mtls2005 said:

 

The last promotion (2011) might be used as a model?

 

I think it had a few "levels". And a fair amount of rules. First car, one time only, produciton levels, engine displacements. etc.

 

Vague recollection of 100,000 baht refund on a 600,000 baht localy manufactured vehicle (Vios). Maybe paid after one year.

 

~ 1.25 million people signed up back then.

 

 

 

 

What I recall it was mostly for econo-box cars and like you report, a million plus people signed-up for it and a year later...many buyers ultimately couldn't make the payments and had their cars repossessed. 

[tonray]

1 minute ago, Pattaya Spotter said:

What I recall it was mostly for econo-box cars and like you report, a million plus people signed-up for it and a year later...many buyers ultimately couldn't make the payments and had their cars repossessed. 

My GF still has her first car...a Mitsubishi Mirage 2012.....she took the deal back then.

[Rmac442]

Madness with so many cars already on the roads and every town and city in Thailand getting clogged up with parked cars ..and, encouraging people to buy cars but they can't afford ..

[rkidlad]

38 minutes ago, Pattaya Spotter said:

What I recall it was mostly for econo-box cars and like you report, a million plus people signed-up for it and a year later...many buyers ultimately couldn't make the payments and had their cars repossessed. 

Yes, knew a couple of people who signed up. Not sure if they could afford it or not, but I do remember well how excited they were at getting 100,000 baht. That's all that seemed to matter to them.

 

I dread to think how many people would default in this current climate if they repeated this deal. 

[overherebc]

13 minutes ago, rkidlad said:

Yes, knew a couple of people who signed up. Not sure if they could afford it or not, but I do remember well how excited they were at getting 100,000 baht. That's all that seemed to matter to them.

 

I dread to think how many people would default in this current climate if they repeated this deal. 

?

[AbeNormal]

good idea

 

encourage households already strapped with debt to get into more debt

[mtls2005]

Some investigation indicates that this will be via a deduction for those who pay/file income tax return.

 

But still early on.

 

 

[Emdog]

How about keeping the tax and using the money to aid those who have lost their jobs? No, that would make sense

Better to help those who don't need a break... this might motivate those who still have a job to go in even more over their heads in debt

[Grumpy John]

"strategy to cut levels of hazardous PM2.5 air pollution that have plagued Thailand. Vehicle engines run on fossil fuels have been blamed for the high levels of PM2.5.

 

Source: https://www.nationthailand.com/auto/30393448"

 

That's not exactly fair.  The worst polluters using diesel are the old buses, trucks and pick-ups that spew nightmare amounts of unburnt diesel and burnt engine oil everywhere they go.  Are the muppets in government so blind they cannot see the problem.

Modified pick-up motors and 2 stroke motorcycle engines are also a problem...to a lesser extent.  Have spot emissions tests and defect those that don't measure up. And confiscate the offenders vehicles.

[Scot123]

I remember buying my first pickup in the glory days of Taksin (love him or hate him (I was on the hate side) he did more for the ordinary people of Thailand than ANY General ever has. A Triton 4x4 pickup with carry boy. It cost me 740,000baht = £11000 back then (the same vehicle in the uk was selling for £30k. That's when vehicles were cheaper in Thailand but the generals just kept on putting tax on them now buying a car made in Thailand is thousands of pounds more expensive  than the same car that's shipped to the UK. Tells a story.

[stouricks]

6 hours ago, mtls2005 said:

 

The last promotion (2011) might be used as a model?

 

I think it had a few "levels". And a fair amount of rules. First car, one time only, produciton levels, engine displacements. etc.

 

Vague recollection of 100,000 baht refund on a 600,000 baht localy manufactured vehicle (Vios). Maybe paid after one year.

 

~ 1.25 million people signed up back then.

 

 

 

 

I got 100k back on a 900k Vigo, than you Yingluck. How many first-time buyers are making enough salary to afford a new car?

[Felt 35]

5 hours ago, Rmac442 said:

Madness with so many cars already on the roads and every town and city in Thailand getting clogged up with parked cars ..and, encouraging people to buy cars but they can't afford ..

Desperation make people mad, also governments. Btw, It was madness in 2011 and took the last hope out of  Thailand being even near environment friendly. Sold both cars the year after and haven't looked back.

Felt

[Felt 35]

14 minutes ago, Scot123 said:

he did more for the ordinary people of Thailand

????eh...well at least he helped to increase their dept????

[Ireland32]

Damn I bought last week maybe retroactive lol

[Ireland32]

29 minutes ago, Felt 35 said:

????eh...well at least he helped to increase their dept????

DEBT

[Ireland32]

5 hours ago, mtls2005 said:

Some investigation indicates that this will be via a deduction for those who pay/file income tax return.

 

But still early on.

 

 

I would like to see those FAKE Tax returns on that profile picture , Straight to Prison 

[rvaviator]

5 hours ago, AbeNormal said:

good idea

 

encourage households already strapped with debt to get into more debt

Well good to get a new car so you can drive around and take advantage of all them big holiday discounts handed out to get the Tourist industry going again ???? ....

 

How to spend your way into financial trouble 101 ...

[hotchilli]

8 hours ago, webfact said:

Tax cut for new-car purchases in pipeline

Yingluk did something similar, just a vote buying ruse.

The rich bought a 2nd/3rd/4th car cheaply for the Mia nois and got a tax concession... 
some poor people attempted to buy their first car and ultimately got into debt issues.

This is a just going to do more harm than good in the long term.. more cars on the road and longer traffic jams.

[Peterphuket]

Please, no electric cars, they poluted in many different ways.

Now on this days there are diesel engines that produce less polution than any petrol car.

Believe it or not.

[Felt 35]

5 hours ago, Ireland32 said:

DEBT

uhu bummer???? sorry for that

[Pattaya Spotter]

15 hours ago, Scot123 said:

Taksin (love him or hate him (I was on the hate side) he did more for the ordinary people of Thailand than ANY General ever has.

That was his downfall.

[Tropposurfer]

My comment is laterally related as it refers to cars;

but I wonder when if and what the govt taxation excise situation will be going forward for imported vehicles, and what if any discussions have or are being had regarding this?

the 300% levy is patently ridiculous 

- to consumers (but obviously not the govt). This levy as we know extends to all imported items that I’m aware of which long ago stopped me buying anything imported (except the odd item at an outlet mall which in price coincided with Australian and internet purchasing sites).

id have bought a Benz some years back here if the prices had similar excise demands as Australia.

lije so much of what is done here such crazy excises prohibit the economy and job creation as far as my poor economics head can see.