Tax Refund Approved for First-time Car Buyers

The Cabinet has approved the proposal to grant tax refund to first-time car buyers, starting on October 1.

Automakers expect the measure to boost car sales in 2012 by 500,000 units.

Industry Minister Wannarat Channukul said the Cabinet has given the green light to the proposal to grant first-time car buyers tax refund of up to 100,000 baht.

The measure is expected to cost the government 30 billion baht and to boost vehicle sales in Thailand by 500,000 units in 2012

The tax refund will be eligible for vehicles that are purchased from September 16 this year until December 2012 for first-time car buyers buying sedans and pick-up trucks with engines that are smaller than 1500 cc and cost less than 1 million baht.

The car cannot be resold or transferred for 5 years.

The car must also be locally built, excluding those assembled in the country using imported contents.

The buyers will receive the tax refund after they own the car for 1 year.

The meeting also approved the draft bill on a spending budget of 2.33 trillion baht for the upcoming 2012 fiscal year when the government will run a deficit of 350 billion baht, on par with the 2011's figure.

Around 73 billion of the total amount has been set aside for the repayment of debt incurred by the previous government.

Meanwhile, director-general of the Excise Department, Phongpanu Sawetarun, stated the Cabinet has resolved to extend the period of diesel excise tax reduction until the end of this year.

The measure was first due to expire at the end of this month.

-- Tan Network 2011-09-13

pick-up trucks with engines that are smaller than 1500 cc

Are there such things available?