Eco-car Tax Package Complete

[george]

Eco-car tax package complete

The Board of Investment on Friday approved the tax privileges for the eco-car investment projects, requiring the eligible tax beneficiaries to invest at least Bt5 billion in the project.

Deputy Prime Minister and Industry Minister Kosit Panpiemras, who chaired the BoI board meeting today, said that the projects would be entitled to the maximum 8 years of tax exemption regardless of where their plants will be located in the Kingdom. Corporate tax income and machinery import duties will be waived throughout the period.

"To be eligible for the tax incentives, auto companies must submit their plans in a package that covers the assembly, engine production, and the production of parts. The package value must be no less than Bt5 billion," Kosit said.

Eligible companies must also manufacture no fewer than 100,000 units per annum from the fifth year. The vehicles must consume less than 5 litres per 100 kilometres and they must comply with the Euro 4 or higher toxic emission standards. The carbon dioxide emission must be less than 120 grammes per 1 kilometre. Meanwhile, the safety standards must meet the UNECE Reg.94 and Reg.95 standards.

The projects must manufacture at least four of five main engine parts which are cylinder head, cylinder block, crankshaft, camshaft and connecting rod.

Interested companies are invited to submit their applications for the tax privileges within 30 November 2007.

-- The Nation 2007-06-15

[Plus]

The tax is set at 18%, lower than passenger cars (35%) and even pickups (20%).

There is hope that Toyota decides to build hybrids here for eco-car project. That would be sweet.

If Thailand managed to build hybrids for export in Asia it would instantly become a hub.

I miss hubs sometimes.