Bt100,000 Excise Tax Cut For First-Car Buyers

[katabeachbum]

Used car tents owner must be steaming

Now the one year old Yaris with 60000km on it will be difficult to sale with just a 40000 THB price difference against a new car.

Wandrinstar, I think the engine size doesn't matter for pickup trucks, only for sedan.

Yep, this is going to destroy the value of used B segment cars in Thailand, in one fell swoop.

If you're trying to sell a Vios, Yaris, City, Jazz, Mazda2, or double-cab pickup, get a hurry-on before it loses 50K+ of value...

Owners of 2-door pickups need not be alarmed though - they only have a paltry 3% excise tax anyway, so the rebate value on them equates to practically nothing.

as 4 door pickups purchased under this scheme in reality will cost the same as a 2 door/2+2 door due to all additional excicetax refunded, it will hit 2 doors as well

1-2 year old pickups should drop 40-80k baht in days, as well as Th made cars less than 1500cc

[Haooo]

Are foreigners with WP eligible ?

[beano2274]

My MIL was about to purchase a New Honda City, since this new rule has come out she will now purchase it in my wife's name, as she is eligible for the tax deduction, as my MIL has a car in her name at present.

[MoonRiverOasis]

as 4 door pickups purchased under this scheme in reality will cost the same as a 2 door/2+2 door due to all additional excicetax refunded, it will hit 2 doors as well

1-2 year old pickups should drop 40-80k baht in days, as well as Th made cars less than 1500cc

Good point - higher-end extracabs will feel the pain..

e.g.

A top-spec extracab which sells for ~800K has around 19K of excise tax in it, so will drop to ~780K for eligible buyers.

A top-spec doublecab for ~915K has around 85K excise tax, so will drop to 830K for eligible buyers.

It definitely narrows the gap (115K vs 50K)... and makes a mockery of the current excise taxes and their intended purpose.

However, I don't foresee prices in the lower end of the pickup market dropping much, as the entry price for popular-brand 4-doors still remains out of scope for many buyers, even with the tax incentives.

The only exception is the base model BT-50 4-door, which becomes a real value proposition though with the incentives... Sure it's a very basic truck, but 4-doors and a styleside tray for 530K is a bargain.. Pity company buyers can't take advantage of the incentive, but then again, no company car could last 5 years

[wandrinstar]

I was with Mitsu today and they are not sure what will happen. Tried 3 Today. PJ Sport. new Lance Ex , and the G.T.. I want them all,each has its merits. The White EX , with White leather seats looked cool , for 889,its a well built Car..Still rate the City for my needs later on though.

[stefan2519]

This is what you could expect back, if you're eligible.

[beano2274]

I was with Mitsu today and they are not sure what will happen. Tried 3 Today. PJ Sport. new Lance Ex , and the G.T.. I want them all,each has its merits. The White EX , with White leather seats looked cool , for 889,its a well built Car..Still rate the City for my needs later on though.

But all over the CC rating allowed.

[kartman]

I was with Mitsu today and they are not sure what will happen. Tried 3 Today. PJ Sport. new Lance Ex , and the G.T.. I want them all,each has its merits. The White EX , with White leather seats looked cool , for 889,its a well built Car..Still rate the City for my needs later on though.

Mitsu along with the Finance lenders, the Finance Ministry and almost certainly the Government, i think it's a we'll work it out as we go along Legislation .

[wandrinstar]

I was with Mitsu today and they are not sure what will happen. Tried 3 Today. PJ Sport. new Lance Ex , and the G.T.. I want them all,each has its merits. The White EX , with White leather seats looked cool , for 889,its a well built Car..Still rate the City for my needs later on though.

Mitsu along with the Finance lenders, the Finance Ministry and almost certainly the Government, i think it's a we'll work it out as we go along Legislation .

Spot on, as they told me.We havent worked it out yet. Proton are a bit pissed off , dont blame em. Clearly they dont grease palms to good. .

[fullcave]

Like they really need more traffic on the already poor quality roads along with more farmers in debt to banks doing the finance...

No worries next car I buy I'll simply use my sons name....

Edited September 16, 2011 by fullcave

[katabeachbum]

This is what you could expect back, if you're eligible.

Excice Bt, these figures are at retailer level. Excicetax is based on value leaving maker/importer, so I would calculate 7-10% less Excicetax actually paid to revenue, thus refunded under this scheme. I wonder if Thai auto industry will ever display those numbers, as it would make mark up public

[katabeachbum]

I was with Mitsu today and they are not sure what will happen. Tried 3 Today. PJ Sport. new Lance Ex , and the G.T.. I want them all,each has its merits. The White EX , with White leather seats looked cool , for 889,its a well built Car..Still rate the City for my needs later on though.

Mitsu along with the Finance lenders, the Finance Ministry and almost certainly the Government, i think it's a we'll work it out as we go along Legislation .

Spot on, as they told me.We havent worked it out yet. Proton are a bit pissed off , dont blame em. Clearly they dont grease palms to good. .

Thai Proton was already struggling with all Savvy/Saga sales gone to Brio/March. Done 0 down an 0 interest/48 months to consumers for a while now. Assuming this scheme is nail in coffin

[MoonRiverOasis]

I was with Mitsu today and they are not sure what will happen. Tried 3 Today. PJ Sport. new Lance Ex , and the G.T.. I want them all,each has its merits. The White EX , with White leather seats looked cool , for 889,its a well built Car..Still rate the City for my needs later on though.

Mitsu along with the Finance lenders, the Finance Ministry and almost certainly the Government, i think it's a we'll work it out as we go along Legislation .

Spot on, as they told me.We havent worked it out yet. Proton are a bit pissed off , dont blame em. Clearly they dont grease palms to good. .

Thai Proton was already struggling with all Savvy/Saga sales gone to Brio/March. Done 0 down an 0 interest/48 months to consumers for a while now. Assuming this scheme is nail in coffin

Yep, both Proton and Tata are lobbying their respective ambassadors to TH as we speak..

[muratremix]

With my non-existant Thai I found this:

http://www.excise.go.th/fileadmin/STA/pdf_file/car/firstcar.pdf

Complete list of Cars eligble for refund.

Double cab and Pickups can be seen here:

http://www.excise.go.th/fileadmin/STA/pdf_file/car/double_cab.pdf

AND

http://www.excise.go.th/fileadmin/STA/pdf_file/car/pick_up.pdf

[MoonRiverOasis]

Are foreigners with WP eligible ?

Nope. Have just read the offical legislation - you definitely need a Thai ID card to qualify.

[wandrinstar]

Are foreigners with WP eligible ?

Nope. Have just read the offical legislation - you definitely need a Thai ID card to qualify.

Are the Regs in English, i can only read baby Thai. Ferangs as useual will be the scource of payments in many cases.

[nicgwee]

Been done before, the Supplier sends you a Credit later on. Its for Car Buyers, not private motorist who drive 3 LitreComercial Vehicles as private transport...

This just in via the BKK Post:

"The vehicles must have an engine capacity of not more than 1,500cc or be double-cab pick-up trucks with an unlimited engine capacity but a price not exceeding one million baht per unit. The vehicles must be manufactured in Thailand.

Buyers must be 21 years of age or more and can seek a refund of the excise tax deduction up to one year after the purchase, but the refund must not exceed 100,000 baht. The tax refund payments will begin on Oct 1, 2012."

So ... it seems a double-cab is on the list. Question ... how does one determine the potential refund? Are exact excise taxes posted on the vehicle invoice?

When the Waffle dies down,they will be dripped mainly, for argument sake Honda / Toyo do all the work with finance over 5 Years for the Customer, Its so bloody simple, in reality.

Following up on my own post. More details via The Nation this early morning:

"The Cabinet has approved the Finance Ministry's proposed first-car buyer scheme, which is expected to help boost auto sales by as many as 500,000 vehicles in 2012, while as much as Bt30 million is expected to be returned to buyers in tax rebates.

The rebates will represent the return of that part of the purchase price that is made up of excise taxes.

Industry Minister Wannarat Charnnukul said yesterday that the scheme would give tax rebates of up to Bt100,000 to first-time auto buyers from September 16 to December 31, 2012.

The Excise Department will begin issuing the rebates of up to Bt100,000 for each first-car owner after he or she has owned the car for one year. The tax rebate will be a one-off payment made in a lump sum by cheque from the department.

While first-time car buyers will get the tax refund, they will be bound to hold on to their cars for five years, said Deputy Finance Minister Boonsong Teriyaphirom.

Eligible vehicles include passenger cars with an engine capacity of no more than 1,500cc (including eco-cars) and pickups (including double-cab pickups) priced at not more than Bt1 million. Previously, the scheme covered only eco-cars and pickups.

The vehicles must be locally assembled - excluding those that are assembled from used imported parts - and the minimum age for buyers is 21.

To prevent profiteering, the vehicle has to remain in the possession of the first buyer for five years.

After the first year, the Excise Department or its local office will cross-check with the Land Transport Department or its provincial office, inspect the first-car ownership status and inform about the buyer's waiver of ownership-transfer rights for five years. The details will be inspected and recorded in the Land Transport Department's computer system and in the registration booklet.

The first-car buyer booklet and the copy of the registration with its five-year waiver of ownership-transfer rights will then be sent to the Excise Department or its local office, which will pay the rebate via bank cheques starting from October 1 next year.

"The tax rebate is expected to cost [the government] about Bt150 billion, assuming that 500,000 people will buy first cars," Boonsong said. Carmakers and financial institutions will meet with Excise Department officials today to discuss details of the package, he said.

The first-car tax rebate scheme was one of the Pheu Thai Party's populist policies aimed at luring voters in the recent election."

a noob question, it states that it applies to first time buyers from 16 sep onwards. Does it means the car is registered after 16th onwards? And how long does it takes to register the car under the owner name? just bought and collected the car on the red plate. on 03 sep 11. does that means we are already registered as the owner? or is it till we got our own number plate then we are the registered owner? thanks

Edited September 17, 2011 by nicgwee

[PoorSucker]

I think everybody missed that the tax reduction will be on your personal income tax.

If you don't pay taxes, no rebate.

With a salary of 30.000 baht/month your tax deduction will be 12.000 baht.

[muratremix]

I think everybody missed that the tax reduction will be on your personal income tax.

If you don't pay taxes, no rebate.

With a salary of 30.000 baht/month your tax deduction will be 12.000 baht.

So this benefits again Rich people. How nice!

[skybluestu]

I think everybody missed that the tax reduction will be on your personal income tax.

If you don't pay taxes, no rebate.

With a salary of 30.000 baht/month your tax deduction will be 12.000 baht.

Where does it state this?

And how about this 'which will pay the rebate via bank cheques starting from October 1 next year' ?

[PoorSucker]

I think everybody missed that the tax reduction will be on your personal income tax.

If you don't pay taxes, no rebate.

With a salary of 30.000 baht/month your tax deduction will be 12.000 baht.

Where does it state this?

And how about this 'which will pay the rebate via bank cheques starting from October 1 next year' ?

"The Cabinet, during its meeting on September 13, approved guidelines to refund taxes for first-time car buyers."

"The Ministry of Finance reported that the car buyers would be refunded the actual amount of tax they have paid but the ceiling of the refund is set at 100,000 baht per unit. "

http://thailand-business-news.com/news/top-stories/31519-first-time-car-buyers-tax-deduction-not-very-street-wise

Edited September 17, 2011 by PoorSucker

[up-country_sinclair]

^ I think this revelation is going to change a lot of plans about buying a new car.

[skybluestu]

I think everybody missed that the tax reduction will be on your personal income tax.

If you don't pay taxes, no rebate.

With a salary of 30.000 baht/month your tax deduction will be 12.000 baht.

Where does it state this?

And how about this 'which will pay the rebate via bank cheques starting from October 1 next year' ?

"The Cabinet, during its meeting on September 13, approved guidelines to refund taxes for first-time car buyers."

"The Ministry of Finance reported that the car buyers would be refunded the actual amount of tax they have paid but the ceiling of the refund is set at 100,000 baht per unit. "

http://thailand-busi...ery-street-wise

I've read that link, as well as others, and it still doesn't mention anything about the reduction being on your personal income tax!

From what I've read it says that 'The Ministry of Finance reported that the car buyers would be refunded the actual amount of tax they have paid but the ceiling of the refund is set at 100,000 baht per unit.' and that they 'will pay the rebate via bank cheques starting from October 1 next year' .

I know a couple of uni students whose parents plan to buy a car in their child's name, how can they do this if their kid is at university?!

[wandrinstar]

How do Students get a rebate when thet are not employed,some Students are Pro Skivers, 27 Y.O. and still no degree. Most who dont have a small car are allready in Dept for Mobiles and I Pods thingies. As my Wife sees it, if theres an avenue open for dept,a Thais allready found it . Then the majority will default before they get the backhander, and the Cars in the Loan Companies name anyway for 5 years, not the buyer. Perhaps this Red Shirt Mob will include a 90 Day report to make sure the Buyer hasnt done a runner..!!!. Poorly concieved idea . Benefit Rich People ?, bloody stupid statement, they are not interested in small stuff anyway .

[MoonRiverOasis]

I think everybody missed that the tax reduction will be on your personal income tax.

If you don't pay taxes, no rebate.

With a salary of 30.000 baht/month your tax deduction will be 12.000 baht.

This is incorrect information.

I have read the legislation top-to-bottom, and absolutely nowhere is income tax even mentioned.

The qualifications for getting the full refund advertised are (direct translation from Thai):

• Buy a qualfying new vehicle between Sept 16, 2011 and December 31, 2012.
• Full purchase price cannot exceed 1M Baht.
• Vehicle must be 1500cc or less if a passenger car, or a pickup truck of any capacity.
• Vehicle must be manufatured in Thailand.
• The rebate cannot exceed 100,000 Baht.
• The buyer must be at least 21 years of age.
• The buyer must keep the car for a minimum of 5 years.
• The buyer will become eligible for the rebate payment after 1 year of ownership.
• The rebate value will be as published on the www.excise.go.th website at the time your purchased the vehicle.
• There are two ways to request your rebate:
  • At the Excise department offices.
  • By downloading and remitting the claim form published at www.excise.go.th

  [*]Documents required to claim the rebate:

  • Thai ID card
  • Tabien Ban
  • The finance contract in the case of hire-purchase
  • The vehicle registration book
  • The letter originally signed at purchase to waive your right to transfer vehicle ownership in the first 5 years.
  • Evidence of purchasing the car (sale contract)

That's it - nothing at all tied to income tax.

Edited September 18, 2011 by MoonRiverOasis

[MoonRiverOasis]

How do Students get a rebate when thet are not employed

The same way all unemployed (or not officially employed) Thais do... at least 25% downpayment and a guarantor that would qualify for finance.

Some lenders may also want further collatoral, but most don't.

[MoonRiverOasis]

I think everybody missed that the tax reduction will be on your personal income tax.

If you don't pay taxes, no rebate.

With a salary of 30.000 baht/month your tax deduction will be 12.000 baht.

Where does it state this?

And how about this 'which will pay the rebate via bank cheques starting from October 1 next year' ?

"The Cabinet, during its meeting on September 13, approved guidelines to refund taxes for first-time car buyers."

"The Ministry of Finance reported that the car buyers would be refunded the actual amount of tax they have paid but the ceiling of the refund is set at 100,000 baht per unit. "

http://thailand-busi...ery-street-wise

It would appear you are confusing Income Tax with Excise tax - the "actual amount of tax paid" refers to the Excise tax value.

[Felt 35]

Does the buyer get any guarantee that he/she gets his 100K rebate one year from now? I mean if this gets popular we are talking about millions of Baht.

Will it be printed in the sales contract, finance contract or in the letter saying you can’t sell the car in five years?

[MoonRiverOasis]

Does the buyer get any guarantee that he/she gets his 100K rebate one year from now? I mean if this gets popular we are talking about millions of Baht.

Will it be printed in the sales contract, finance contract or in the letter saying you can't sell the car in five years?

The Thai Gov't has earmarked 30 Billion Baht to support the scheme - so your millions are well covered

Given that finance companies are not able to become the rebate beneficiaries, what it'll actually mean is that it'll become harder to finance a car, not easier (due to higher risk of default due to falling into debt with the excise dept).

So the Govt's expecation that it will stilmulate an additional 500,000 new car sales is very unlikely to materialize.

Bottom line, they won't be needing all of that 30BN Baht allotted to the scheme.

As for the the transfer of ownership waiver, this will go into the vehicles Tabien Rot (blue book) as a permanent record, and the only way around it will be to repay the excise department the full tax amount rebated, and have them offically cancel the waiver. It's impossible to transfer ownership of a vehicle without the Tabien Rot.

[skybluestu]

How do Students get a rebate when thet are not employed,some Students are Pro Skivers, 27 Y.O. and still no degree. Most who dont have a small car are allready in Dept for Mobiles and I Pods thingies. As my Wife sees it, if theres an avenue open for dept,a Thais allready found it . Then the majority will default before they get the backhander, and the Cars in the Loan Companies name anyway for 5 years, not the buyer. Perhaps this Red Shirt Mob will include a 90 Day report to make sure the Buyer hasnt done a runner..!!!. Poorly concieved idea . Benefit Rich People ?, bloody stupid statement, they are not interested in small stuff anyway .

It isn't a rebate based on employment or personal income tax payments, it is a one-off rebate of the excise tax that is paid when buying a new car. It is nonsense that it is related to personal income tax.

If a parent acts as a guarantor to their son/daughter then it is very easy for a student to get a car and therefore very easy for Mum/Dad to take advantage of this new scheme even though they aren't first time car owners.