Tax Rebates Begin Under First-Car Scheme: Thailand

[webfact]

TAXATION

Tax rebates begin under first-car scheme

KINGSLEY WIJAYASINHA,

SUPHANNEE POOTPISUT

THE NATION

BANGKOK: -- The Finance Ministry yesterday started paying tax rebates to first-car owners. So far 250,000 buyers have applied for rebates worth Bt18 billion. Toyota Vios, Mazda2 and Honda Brio cars and Isuzu and Toyota pickup trucks are the preferred brands under the scheme.

The new-auto market is expected to reach an all-time high of 1.2 million units this year, thanks to stimulus programmes such as the first-car-buyer scheme as well as the launch of many new or redesigned models.

Deputy Finance Minister Viroon Tejapaibul transferred Bt3.56 million to 47 car buyers who have met the eligibility requirement of owning their car for one year.

The project started on September 16 last year and comes to an end on December 31 this year.

The Comptroller-Generals' Department transfers funds to Krung Thai Bank, which deposits the money into the accounts of the recipients every 5th and 20th of the month.

The government has set aside Bt7 billion to cover tax rebates for the new fiscal year beginning yesterday. If the budget is not enough, the government will tap the central fund to top it up.

"Don't worry about it. We have a strong fiscal position as we have treasury reserves worth more than Bt500 billion," Viroon said in response to concerns over the loss of such a large amount of tax revenue.

The incentive programme will meet the target of 500,000 units and tax rebates of about Bt30 billion, he added.

Somchai Poonsawasdi, director-general of the Excise Department, said that as of yesterday, there were 250,744 car buyers applying for Bt18 billion in tax rebates.

Passenger cars had the lion's share with 141,000 units, followed by standard pickups with 54,000. The rest are double-cab pickups.

Car sales under the scheme are expected to beat the target, he said.

According to auto companies, many buyers of B-segment cars with 1,500cc engines, double-cab pickups and eco-cars have applied for the tax rebate.

For example, 70 per cent of Toyota Vios buyers and 60 per cent of Mazda2 buyers have applied for excise-tax rebates up to the limit of Bt100,000 per car.

Eco-car buyers are also participating even though their rebates are lower because of the lower excise-tax rate on this type of vehicle. For example, Honda Brio buyers would get back slightly more than Bt70,000.

Eco-friendly vehicles such as the Honda Jazz Hybrid, which enjoys a low 10-per cent excise rate, also qualify, with a rebate of about Bt50,000 on offer.

The government started with the target of 500,000 vehicles and Bt30 billion in rebates. However, it extended the December 31 delivery deadline to next year to help carmakers whose production suffered from parts-supply disruption caused by last year's flood, so the figures are expected to increase dramatically.

-- The Nation 2012-10-02

[Thai at Heart]

Why would he even mention strong fiscal position

techapiabul and 1997, not a good time.

Seems one should expect these tax rebates to be delivered quite slowly.

[asiawatcher]

Just another populist policy to get car sales up, and choke up the rest of the roads.

[seminomadic]

Yingluck, you are BRILLIANT. Thank Christ in heaven cars can be gotten more cheaply here. The high-speed train project will offset any additional congestion once that's up and running, not to mention that the tablet PC's will allow children to tell their parents how to circumnavigate gridlocked areas using Google maps while their parents are driving.

See? All figured out. Thailand's getting back on track.

Brace for the future.

Edited October 2, 2012 by seminomadic

[kartman]

Project ends 31st December will meet target 500,000 units, 250,744 up till yesterday so if you hit any jams on the roads in the next 12 weeks it will be people queuing up to get into the showrooms .

[Colabamumbai]

Almost makes me think of buying a car or truck. Article is a little misleading, or maybe it is me, it says it ends Dec. 31, then goes on to talk about next year.

But it did answer my question as to how you get the rebate. From a skeptic.

I see now, delivery deadline next year, yes probably have to wait a year for delivery.

Edited October 2, 2012 by Colabamumbai

[julemanden]

Almost makes me think of buying a car or truck. Article is a little misleading, or maybe it is me, it says it ends Dec. 31, then goes on to talk about next year.

But it did answer my question as to how you get the rebate. From a skeptic.

I see now, delivery deadline next year, yes probably have to wait a year for delivery.

I'm sure any showroom can tell you how it's done

[DDuval]

we bough a car and are due for our rebate in March. Of coarse I wont hold my breath we we get the money without red tape and the usual Thai cr** that always goes with the word money

[kartman]

'Every' 5th and 20th of the month sounds like 500baht every two weeks

[hgma]

i bought a new car this year, nothing....nada.

Thai only?

but.....but.......ok.

w're here to spend money NOT to make money.

[iang]

A new vehicle dealership confirmed to me just yesterday that (of course) one has to be a Thai citizen to be eligible for the rebate & that the rebate would take approximately 1 year to be processed & paid.

The salesperson described it as the government is effectivelty reimbursing the interest payments on the loans people are taking out to get these new vehicles.

There was also speculation that many vehicles bought under this scheme were not really going to first vehicle buyers. What's happening is the vehicle is being bought in the name of trustworthy family member who's never owned a vehicle & would never drive it - e.g. someone's elderly mother. The real user of the vehicle then acts as finance guarantor on the loan to buy the vehicle. The government rebate is secured and the non-first vehicle owner gets his/her replacement vehicle with an effective rebate. As long as you can wait a year to get the money of course.

[Buchholz]

some of the flaws

First Car Buyer scheme is flawed

The excise tax-exemption policy for first-car buyers, which was announced by the government late last year, can be viewed as a policy that makes it easier for those with low incomes to purchase an automobile, as well as help domestic auto-makers to sell more vehicles.

However, if studied carefully, the policy contains a large number of flaws that need to be corrected.

In terms of consumers, those with low salaries don't fully benefit from the scheme either. This is because a large number of people purchase their first car after they graduate or during their first three years of work. They normally go for a new or a used car and would lose the right to participate in the First Car Buyer programme.

Meanwhile, grandpa and grandma in the countryside, who have owned rusty used trucks before, might also want to enjoy the tax break on a new vehicle to replace their unreliable truck. But they have lost the right, and the old truck they have won't fetch enough for a down payment either, as the car scheme has caused a plunge in used vehicle prices.

And the single-cab pickup trucks that farmers use will get just over Bt10,000 in tax reduction while luxurious four-wheel-drive off-road pickup trucks with full option get a tax break of as much as Bt100,000.

The rule that states the buyer must own the vehicle for at least five years is also uncontrollable. Perhaps, Cabinet members are rich and have never purchased a used car. That's why they are unaware that more than 90 per cent of used car sales in Thailand is done through a "floating transfer". This allows the vehicle to be sold right away.

Next comes an interesting question. Mr A has just graduated from university, which means that he has never worked and paid any taxes. He then enters the First Car Buyer programme and enjoys a Bt100,000 tax rebate. In this case, is Mr A - who has never paid any taxes in his life and enjoys the excise tax exemption - considered as taking advantage of others in society?

Similarly, single cab pickups get excise tax rebates of less than Bt30,000 while 4-door models, which had been labelled luxury vehicles by previous governments and suffered from higher duty, enjoy rebates of Bt80,000 to Bt100,000.

Used-car dealers can be considered as dead due to the programme, since the finance minister came out to say that used cars have no excise duty and he doesn't know how the rebate could be carried out.

It begs the question: is helping a particular business while killing another the right thing to do?

And after the programme takes effect, those who want to sell used cars will suddenly suffer from lower resale value. For example, if a particular car is worth Bt600,000 and qualifies for the First Car Buyer programme, the buyer will get a Bt100,000 excise duty rebate.

So whenever this model is sold in the used car market, the second buyer will consider that the first received the rebate from the First Car Buyer programme. This creates a resale price vacuum in the used car market for models included in the programme as some buyers get the tax return and some don't.

To date, there has been no news of how the programme will end. Many are calling for it to be extended past the December 31 deadline as auto-makers can't keep up with demand as they have not fully recovered from last year's massive flood.

-- The Nation 2012-05-02

[SIamYank]

Think this is another populist scheme that will drain government coffers and put more cars on the road. Of course people are taking advantage of it and having trusted family members buy their new cars for them so that they can get the rebate. It is a natural result of these sorts of programs.

That is exactly why my wife bought her first car in 2012. She has not driven it once of course. We have been to the office just two weeks ago. It was very easy to register and they say we will see deposits in to her account September 2013. 12% rebate on a car we needed any way. It is a no brainer!

For our sake I hope it doesnt come to a crashing halt just before wee get our loot... we'll see

[kimamey]

Think this is another populist scheme that will drain government coffers and put more cars on the road. Of course people are taking advantage of it and having trusted family members buy their new cars for them so that they can get the rebate. It is a natural result of these sorts of programs.

That is exactly why my wife bought her first car in 2012. She has not driven it once of course. We have been to the office just two weeks ago. It was very easy to register and they say we will see deposits in to her account September 2013. 12% rebate on a car we needed any way. It is a no brainer!

For our sake I hope it doesnt come to a crashing halt just before wee get our loot... we'll see

My gf ordered her new Honda Jazz in January and got it in June. Whilst I'm there I drive a lot of the time but she has to drive it to work now I'm back in the UK for a while. Not sure about the chances of getting any money back. We haven't even got any licence plates for it yet. Maybe she should have given a bigger "donation / tip".

[TongueThaied]

There was also speculation that many vehicles bought under this scheme were not really going to first vehicle buyers. What's happening is the vehicle is being bought in the name of trustworthy family member who's never owned a vehicle & would never drive it - e.g. someone's elderly mother. The real user of the vehicle then acts as finance guarantor on the loan to buy the vehicle. The government rebate is secured and the non-first vehicle owner gets his/her replacement vehicle with an effective rebate. As long as you can wait a year to get the money of course.

Of course this is what's going on -- it worked for me. Look at all the college kids and grandma's paying cash for their first car! However, this doesn't defeat the real intent of the program. The "first time" business is to make it more palatable politically, but because anybody can use the method described above, the restriction is illusory. While labeled "populist," the real intent of the program is to reward car manufacturing moguls who dump money into the political campaign coffers. They are catching on to the American way of doing business! I mean, let's call a spade a spade.

[belg]

as if there were not enough cars already clogging bangkok roads enough

[OZEMADE]

There was also speculation that many vehicles bought under this scheme were not really going to first vehicle buyers. What's happening is the vehicle is being bought in the name of trustworthy family member who's never owned a vehicle & would never drive it - e.g. someone's elderly mother. The real user of the vehicle then acts as finance guarantor on the loan to buy the vehicle. The government rebate is secured and the non-first vehicle owner gets his/her replacement vehicle with an effective rebate. As long as you can wait a year to get the money of course.

Of course this is what's going on -- it worked for me. Look at all the college kids and grandma's paying cash for their first car! However, this doesn't defeat the real intent of the program. The "first time" business is to make it more palatable politically, but because anybody can use the method described above, the restriction is illusory. While labeled "populist," the real intent of the program is to reward car manufacturing moguls who dump money into the political campaign coffers. They are catching on to the American way of doing business! I mean, let's call a spade a spade.

China, Malaysia and Indonesia all did the same, so it is very popular and stimulates the economy.

[SIamYank]

Think this is another populist scheme that will drain government coffers and put more cars on the road. Of course people are taking advantage of it and having trusted family members buy their new cars for them so that they can get the rebate. It is a natural result of these sorts of programs.

That is exactly why my wife bought her first car in 2012. She has not driven it once of course. We have been to the office just two weeks ago. It was very easy to register and they say we will see deposits in to her account September 2013. 12% rebate on a car we needed any way. It is a no brainer!

For our sake I hope it doesnt come to a crashing halt just before wee get our loot... we'll see

My gf ordered her new Honda Jazz in January and got it in June. Whilst I'm there I drive a lot of the time but she has to drive it to work now I'm back in the UK for a while. Not sure about the chances of getting any money back. We haven't even got any licence plates for it yet. Maybe she should have given a bigger "donation / tip".

Tell you GF to go to the nearest office as soon as she gets her registration (ie. has to turn in her red plates) You dont actually need your black and white plates, only the blue book/registration. We dont have our black and white plates either... But be careful. You have to report the purchase within a deadline after recieving your blue book. I think it might even be 30 days deadline.

We asked our salesperson from the showroom to go with us and he walked us through the process. We were in and out in 30 minutes. We did tip him for his good service, but didnt have to pay any backhanders to anybody official.

[Thai at Heart]

some of the flaws

First Car Buyer scheme is flawed

The excise tax-exemption policy for first-car buyers, which was announced by the government late last year, can be viewed as a policy that makes it easier for those with low incomes to purchase an automobile, as well as help domestic auto-makers to sell more vehicles.

However, if studied carefully, the policy contains a large number of flaws that need to be corrected.

In terms of consumers, those with low salaries don't fully benefit from the scheme either. This is because a large number of people purchase their first car after they graduate or during their first three years of work. They normally go for a new or a used car and would lose the right to participate in the First Car Buyer programme.

Meanwhile, grandpa and grandma in the countryside, who have owned rusty used trucks before, might also want to enjoy the tax break on a new vehicle to replace their unreliable truck. But they have lost the right, and the old truck they have won't fetch enough for a down payment either, as the car scheme has caused a plunge in used vehicle prices.

And the single-cab pickup trucks that farmers use will get just over Bt10,000 in tax reduction while luxurious four-wheel-drive off-road pickup trucks with full option get a tax break of as much as Bt100,000.

The rule that states the buyer must own the vehicle for at least five years is also uncontrollable. Perhaps, Cabinet members are rich and have never purchased a used car. That's why they are unaware that more than 90 per cent of used car sales in Thailand is done through a "floating transfer". This allows the vehicle to be sold right away.

Next comes an interesting question. Mr A has just graduated from university, which means that he has never worked and paid any taxes. He then enters the First Car Buyer programme and enjoys a Bt100,000 tax rebate. In this case, is Mr A - who has never paid any taxes in his life and enjoys the excise tax exemption - considered as taking advantage of others in society?

Similarly, single cab pickups get excise tax rebates of less than Bt30,000 while 4-door models, which had been labelled luxury vehicles by previous governments and suffered from higher duty, enjoy rebates of Bt80,000 to Bt100,000.

Used-car dealers can be considered as dead due to the programme, since the finance minister came out to say that used cars have no excise duty and he doesn't know how the rebate could be carried out.

It begs the question: is helping a particular business while killing another the right thing to do?

And after the programme takes effect, those who want to sell used cars will suddenly suffer from lower resale value. For example, if a particular car is worth Bt600,000 and qualifies for the First Car Buyer programme, the buyer will get a Bt100,000 excise duty rebate.

So whenever this model is sold in the used car market, the second buyer will consider that the first received the rebate from the First Car Buyer programme. This creates a resale price vacuum in the used car market for models included in the programme as some buyers get the tax return and some don't.

To date, there has been no news of how the programme will end. Many are calling for it to be extended past the December 31 deadline as auto-makers can't keep up with demand as they have not fully recovered from last year's massive flood.

-- The Nation 2012-05-02

Whoever write y this piece should be promoted to chief economic editor if he or she already isn't.

[OZEMADE]

some of the flaws

First Car Buyer scheme is flawed

The excise tax-exemption policy for first-car buyers, which was announced by the government late last year, can be viewed as a policy that makes it easier for those with low incomes to purchase an automobile, as well as help domestic auto-makers to sell more vehicles.

However, if studied carefully, the policy contains a large number of flaws that need to be corrected.

In terms of consumers, those with low salaries don't fully benefit from the scheme either. This is because a large number of people purchase their first car after they graduate or during their first three years of work. They normally go for a new or a used car and would lose the right to participate in the First Car Buyer programme.

Meanwhile, grandpa and grandma in the countryside, who have owned rusty used trucks before, might also want to enjoy the tax break on a new vehicle to replace their unreliable truck. But they have lost the right, and the old truck they have won't fetch enough for a down payment either, as the car scheme has caused a plunge in used vehicle prices.

And the single-cab pickup trucks that farmers use will get just over Bt10,000 in tax reduction while luxurious four-wheel-drive off-road pickup trucks with full option get a tax break of as much as Bt100,000.

The rule that states the buyer must own the vehicle for at least five years is also uncontrollable. Perhaps, Cabinet members are rich and have never purchased a used car. That's why they are unaware that more than 90 per cent of used car sales in Thailand is done through a "floating transfer". This allows the vehicle to be sold right away.

Next comes an interesting question. Mr A has just graduated from university, which means that he has never worked and paid any taxes. He then enters the First Car Buyer programme and enjoys a Bt100,000 tax rebate. In this case, is Mr A - who has never paid any taxes in his life and enjoys the excise tax exemption - considered as taking advantage of others in society?

Similarly, single cab pickups get excise tax rebates of less than Bt30,000 while 4-door models, which had been labelled luxury vehicles by previous governments and suffered from higher duty, enjoy rebates of Bt80,000 to Bt100,000.

Used-car dealers can be considered as dead due to the programme, since the finance minister came out to say that used cars have no excise duty and he doesn't know how the rebate could be carried out.

It begs the question: is helping a particular business while killing another the right thing to do?

And after the programme takes effect, those who want to sell used cars will suddenly suffer from lower resale value. For example, if a particular car is worth Bt600,000 and qualifies for the First Car Buyer programme, the buyer will get a Bt100,000 excise duty rebate.

So whenever this model is sold in the used car market, the second buyer will consider that the first received the rebate from the First Car Buyer programme. This creates a resale price vacuum in the used car market for models included in the programme as some buyers get the tax return and some don't.

To date, there has been no news of how the programme will end. Many are calling for it to be extended past the December 31 deadline as auto-makers can't keep up with demand as they have not fully recovered from last year's massive flood.

-- The Nation 2012-05-02

Whoever write y this piece should be promoted to chief economic editor if he or she already isn't.

That would be an Academic Democrat that does not like the Thai people getting something that might make them happy and put a lazy TB100,000 maximum in their kick in 12 months time. Sour grapes by the opposition.

[Buchholz]

some of the flaws

First Car Buyer scheme is flawed

The excise tax-exemption policy for first-car buyers, which was announced by the government late last year, can be viewed as a policy that makes it easier for those with low incomes to purchase an automobile, as well as help domestic auto-makers to sell more vehicles.

However, if studied carefully, the policy contains a large number of flaws that need to be corrected.

In terms of consumers, those with low salaries don't fully benefit from the scheme either. This is because a large number of people purchase their first car after they graduate or during their first three years of work. They normally go for a new or a used car and would lose the right to participate in the First Car Buyer programme.

Meanwhile, grandpa and grandma in the countryside, who have owned rusty used trucks before, might also want to enjoy the tax break on a new vehicle to replace their unreliable truck. But they have lost the right, and the old truck they have won't fetch enough for a down payment either, as the car scheme has caused a plunge in used vehicle prices.

And the single-cab pickup trucks that farmers use will get just over Bt10,000 in tax reduction while luxurious four-wheel-drive off-road pickup trucks with full option get a tax break of as much as Bt100,000.

The rule that states the buyer must own the vehicle for at least five years is also uncontrollable. Perhaps, Cabinet members are rich and have never purchased a used car. That's why they are unaware that more than 90 per cent of used car sales in Thailand is done through a "floating transfer". This allows the vehicle to be sold right away.

Next comes an interesting question. Mr A has just graduated from university, which means that he has never worked and paid any taxes. He then enters the First Car Buyer programme and enjoys a Bt100,000 tax rebate. In this case, is Mr A - who has never paid any taxes in his life and enjoys the excise tax exemption - considered as taking advantage of others in society?

Similarly, single cab pickups get excise tax rebates of less than Bt30,000 while 4-door models, which had been labelled luxury vehicles by previous governments and suffered from higher duty, enjoy rebates of Bt80,000 to Bt100,000.

Used-car dealers can be considered as dead due to the programme, since the finance minister came out to say that used cars have no excise duty and he doesn't know how the rebate could be carried out.

It begs the question: is helping a particular business while killing another the right thing to do?

And after the programme takes effect, those who want to sell used cars will suddenly suffer from lower resale value. For example, if a particular car is worth Bt600,000 and qualifies for the First Car Buyer programme, the buyer will get a Bt100,000 excise duty rebate.

So whenever this model is sold in the used car market, the second buyer will consider that the first received the rebate from the First Car Buyer programme. This creates a resale price vacuum in the used car market for models included in the programme as some buyers get the tax return and some don't.

To date, there has been no news of how the programme will end. Many are calling for it to be extended past the December 31 deadline as auto-makers can't keep up with demand as they have not fully recovered from last year's massive flood.

-- The Nation 2012-05-02

Whoever write y this piece should be promoted to chief economic editor if he or she already isn't.

Pattanadesh Asasappakij is the author.

Google of the author and his nickname produces an interesting biography of this long-time automotive industry expert and journalist:

Pattanadesh Uncle Desh

.

Edited October 3, 2012 by Buchholz

[OZEMADE]

Mr Buchholz., and your point being?

[Buchholz]

some of the flaws

First Car Buyer scheme is flawed

The excise tax-exemption policy for first-car buyers, which was announced by the government late last year, can be viewed as a policy that makes it easier for those with low incomes to purchase an automobile, as well as help domestic auto-makers to sell more vehicles.

However, if studied carefully, the policy contains a large number of flaws that need to be corrected.

In terms of consumers, those with low salaries don't fully benefit from the scheme either. This is because a large number of people purchase their first car after they graduate or during their first three years of work. They normally go for a new or a used car and would lose the right to participate in the First Car Buyer programme.

Meanwhile, grandpa and grandma in the countryside, who have owned rusty used trucks before, might also want to enjoy the tax break on a new vehicle to replace their unreliable truck. But they have lost the right, and the old truck they have won't fetch enough for a down payment either, as the car scheme has caused a plunge in used vehicle prices.

And the single-cab pickup trucks that farmers use will get just over Bt10,000 in tax reduction while luxurious four-wheel-drive off-road pickup trucks with full option get a tax break of as much as Bt100,000.

The rule that states the buyer must own the vehicle for at least five years is also uncontrollable. Perhaps, Cabinet members are rich and have never purchased a used car. That's why they are unaware that more than 90 per cent of used car sales in Thailand is done through a "floating transfer". This allows the vehicle to be sold right away.

Next comes an interesting question. Mr A has just graduated from university, which means that he has never worked and paid any taxes. He then enters the First Car Buyer programme and enjoys a Bt100,000 tax rebate. In this case, is Mr A - who has never paid any taxes in his life and enjoys the excise tax exemption - considered as taking advantage of others in society?

Similarly, single cab pickups get excise tax rebates of less than Bt30,000 while 4-door models, which had been labelled luxury vehicles by previous governments and suffered from higher duty, enjoy rebates of Bt80,000 to Bt100,000.

Used-car dealers can be considered as dead due to the programme, since the finance minister came out to say that used cars have no excise duty and he doesn't know how the rebate could be carried out.

It begs the question: is helping a particular business while killing another the right thing to do?

And after the programme takes effect, those who want to sell used cars will suddenly suffer from lower resale value. For example, if a particular car is worth Bt600,000 and qualifies for the First Car Buyer programme, the buyer will get a Bt100,000 excise duty rebate.

So whenever this model is sold in the used car market, the second buyer will consider that the first received the rebate from the First Car Buyer programme. This creates a resale price vacuum in the used car market for models included in the programme as some buyers get the tax return and some don't.

To date, there has been no news of how the programme will end. Many are calling for it to be extended past the December 31 deadline as auto-makers can't keep up with demand as they have not fully recovered from last year's massive flood.

-- The Nation 2012-05-02

Whoever write y this piece should be promoted to chief economic editor if he or she already isn't.

Pattanadesh Asasappakij is the author.

Google of the author and his nickname produces an interesting biography of this long-time automotive industry expert and journalist:

Pattanadesh Uncle Desh

Mr Buchholz., and your point being?

uhhhh, the point being to supply additional information on an author that was commented on.

.

[OZEMADE]

Buchholz, on 2012-05-02 15:01:49, said:

First Car Buyer scheme is flawed

The excise tax-exemption policy for first-car buyers, which was announced by the government late last year, can be viewed as a policy that makes it easier for those with low incomes to purchase an automobile, as well as help domestic auto-makers to sell more vehicles.

Agreed

However, if studied carefully, the policy contains a large number of flaws that need to be corrected.

In terms of consumers, those with low salaries don't fully benefit from the scheme either. This is because a large number of people purchase their first car after they graduate or during their first three years of work. They normally go for a new or a used car and would lose the right to participate in the First Car Buyer programme.

Well that would be bad luck if they had already bought a new or used car, as this programme is starting now. Don’t go to the past.

Meanwhile, grandpa and grandma in the countryside, who have owned rusty used trucks before, might also want to enjoy the tax break on a new vehicle to replace their unreliable truck. But they have lost the right, and the old truck they have won't fetch enough for a down payment either, as the car scheme has caused a plunge in used vehicle prices.

Rubbish, grandpa or grandma can privately sell or trade their old vehicle in on a new one, as both would not have had their name on the purchase of the old rattler, so one of them or a direct member of the family would have the right to purchase the new vehicle.

And the single-cab pickup trucks that farmers use will get just over Bt10,000 in tax reduction while luxurious four-wheel-drive off-road pickup trucks with full option get a tax break of as much as Bt100,000.

I believe they actually get TB20,000 for a sing-cab pickup. Yes top of the range paying Tb900,000. Get TB100,000 rebate back.

The rule that states the buyer must own the vehicle for at least five years is also uncontrollable. Perhaps, Cabinet members are rich and have never purchased a used car. That's why they are unaware that more than 90 per cent of used car sales in Thailand is done through a "floating transfer". This allows the vehicle to be sold right away.

The Gov is not really interested in the used car, as after the 5 yr period you are entitled to keep your TB100,000.

If you sell your car before the 5 yr period the owner of the car would have to repay the rebate the Gov gave him up to whatever the amount was. If Tb20,000 or TB100,000. On the sale of the car he would have to pay that amount back.

Next comes an interesting question. Mr A has just graduated from university, which means that he has never worked and paid any taxes. He then enters the First Car Buyer programme and enjoys a Bt100,000 tax rebate. In this case, is Mr A - who has never paid any taxes in his life and enjoys the excise tax exemption - considered as taking advantage of others in society?

What a stupid question. I would say that Mr A family had paid a lot of taxes and paid a lot of money to put him through University. If his family did not buy the car for him, he after graduating, would have started working, paying taxes and purchased the vehicle himself. So why should he not enjoy the excise tax that he or his family had paid for or that he is now paying for.

Similarly, single cab pickups get excise tax rebates of less than Bt30,000 while 4-door models, which had been labelled luxury vehicles by previous governments and suffered from higher duty, enjoy rebates of Bt80,000 to Bt100,000.

If you want to pay TB500,000 you get less. If you want to pay up to a TB1000,000 for a luxury model you get more. Not hard to work out.

Used-car dealers can be considered as dead due to the programme, since the finance minister came out to say that used cars have no excise duty and he doesn't know how the rebate could be carried out.

Why would used cars have an excise duty as it was originally paid when the car was purchased, it is called a tax.

This is called a Gov rebate. I sold my 7 yo ISUZU D-MAX to a dealer for TB400,000 and he was going to sell it at a profit the same day as he had a buyer already. They still get their chop.

It begs the question: is helping a particular business while killing another the right thing to do?

Helping/Assisting the car industry in Thailand after the floods last X-Mas is helping the economy, stimulating it, getting it up and going again. There have been that many cars sold they can’t keep up with the demand, not only of the assortment of vehicles, but the supply of number plates as well.

As far as killing another industry, I presume he means the used car industry. It has had no real effect at all and if anything it has helped as a lot of people who had nearly new cars, 12 to 24 months old, traded their vehicle in on a new one in the other parties name and collected up to TB100,000.

And after the programme takes effect, those who want to sell used cars will suddenly suffer from lower resale value. For example, if a particular car is worth Bt600,000 and qualifies for the First Car Buyer programme, the buyer will get a Bt100,000 excise duty rebate.

So whenever this model is sold in the used car market, the second buyer will consider that the first received the rebate from the First Car Buyer programme. This creates a resale price vacuum in the used car market for models included in the programme as some buyers get the tax return and some don't.

This argument is floored from the start. Of course the new car buyer gets the rebate. He then trades or sells the car to the used car dealer for an agreed value. If the used car dealer purchased the car for this agreed value he knows that the new purchaser of the second hand car is not going to get a rebate and so does the purchaser of this vehicle. It’s SECOND HAND, not new, no rebate. People want these second hand cars because they cant afford the new ones.

To date, there has been no news of how the programme will end. Many are calling for it to be extended past the December 31 deadline as auto-makers can't keep up with demand as they have not fully recovered from last year's massive flood.

I did see somewhere that the excise dept had extended the time frame to 31 March 1013. Sorry I can’t find it now.

-- The Nation 2012-05-02

[softgeorge]

Just another populist policy to get car sales up, and choke up the rest of the roads.

We have been shopping around for a new vehicle but have been informed that there is a 12 month delivery time. Order your vehicle, pay the deposit and by the time you get it in 12 months time, it's last years model. We have decided to wait until all this is over. Hey I think there will be a hell of a lot of repossession vehicles floating around in 12 months time and used cars might go for a bargain.

[transam]

Just another populist policy to get car sales up, and choke up the rest of the roads.

We have been shopping around for a new vehicle but have been informed that there is a 12 month delivery time. Order your vehicle, pay the deposit and by the time you get it in 12 months time, it's last years model. We have decided to wait until all this is over. Hey I think there will be a hell of a lot of repossession vehicles floating around in 12 months time and used cars might go for a bargain.

You could be right about floating.