New Vehicular Excise Tax Rates Depend On Co2 Emissions, From 2016: Thailand

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New vehicular excise tax rates depend on CO2 emissions, from 2016

By Digital Media

BANGKOK, Dec 19 - The Cabinet yesterday approved a new excise tax structure to take effect in January 2016 in accord with a vehicle's quantity of carbon dioxide emissions, and 20 per cent higher excise taxes on luxury motorbikes and motorcycles to take immediate effect.

The Finance Ministry earlier asked the Cabinet to agree to an equitable solution to the tax structure's distortion, for fairness in tax collections, and to support the automotive industry.

The new excise tax structure is divided into seven types according to the type of vehicle.

A 30 per cent tax collection will be applied to sedans and vehicles of no more than 10 seats with a cylinder capacity of no more than 3,000cc and CO2 emission of no more than 150g/km. A 35 per cent tax will be levied on emissions of 150-200g/km, and 40 per cent for emissions of more than 200g/km.

A 25-per cent tax collection will cover automobiles using E85 and natural gas and a cylinder capacity of no more than 3,000cc and CO2 emissions of no more than 150g/km. A 30 per cent tax will be applied to the emission quantity of 150-200g/km, and 35 per cent for more than 200g/km.

Hybrid cars with a cylinder capacity of no more than 3,000cc, emitting CO2 at no more than 100g/km will be taxed t 10 per cent. Those releasing carbon dioxide at 100-150g/km will be placed with 20-per cent tax, at 150-200g/km with 25-per cent tax, and at more than 200g/km with 30-per cent tax.

A 3-per cent and a 5-per cent tax collection are levied at pickup trucks with no space behind driver and with a cylinder capacity of no more than 3,250cc, releasing CO2 at no more than 200g/km and at over 200g/km, respectively.

Pickup trucks with space behind driver with no more than 3,250cc cylinder capacity and less than 200g/km CO2 emission are taxed at 5 per cent, and those with emissions over 200g/km taxed at 7 per cent.

Double cab pickups with no more than 3,250cc cylinder capacity and less than 200g/km CO2 emission are taxed at 12per cent, while those with over 200g/km emissions taxed at 15 per cent.

Twenty-five per cent and 30 per cent taxes are levied on passenger pickups with a cylinder capacity of no more than 3,250cc, releasing no more than 200g/km CO2 and over 200g/km, respectively.

The Finance Ministry will receive revenues of around Bt25 billion from excise taxes in 2016.

Meanwhile, the ministry also proposed to Cabinet raising excise taxes on imported luxury motorbikes to 123 per cent for 800-1,000cc cylinder capacity from the current 103 per cent. The new tax rate takes effect today.

The measure is expected to help the government gain more revenue of some Bt150 million. The ministry said those able to purchase such bikes are wealthy enough to pay higher taxes. (MCOT online news)

-- TNA 2012-12-19

[hansnl]

Just to show that the envirement is used for tax purposes.

[canopus1969]

What a total cock-up, just no idea

[laurentbkk]

more taxes .... and roads still in such bad shape ... I dont care to pay more taxes if roads are getting better .. but those taxes will end up in some greedy pockets most probably ...

[IMHO]

For luxury cars > 3L or >220HP (currently 50%) it means less tax, but for most cars it means even more tax..

For those who want to do the math using more commonly available fuel efficiency numbers, here's a rough guide:

Gasoline:

150 gm/KM CO2 = 15.4 KM/L

200 gm/KM CO2 = 11.6 KM/L

Diesel:

150 gm/KM CO2 = 17.7 KM/L

200 gm/KM CO2 = 13.2 KM/L

Personally, I welcome the 10% saving.. now all I need is for Benz to import the GL63 AMG at gray market competitive prices

[Tanaka]

12, 30 etc % of what? Tax collection based on what?

[culicine]

So how would this affect the prices of eco-cars, once the excise rebate is finished? I imagine many will not be sold after the rebate has finished, especially if prices were to increase.

[pacovl46]

"The Finance Ministry earlier asked the Cabinet to agree to an equitable solution to the tax structure's distortion, for FAIRNESS in tax collections..."

How exactly is 103% tax fair for luxurious motorcycles???

[naboo]

"The Finance Ministry earlier asked the Cabinet to agree to an equitable solution to the tax structure's distortion, for FAIRNESS in tax collections..."

How exactly is 103% tax fair for luxurious motorcycles???

As stated in the OP:

The ministry said those able to purchase such bikes are wealthy enough to pay higher taxes.

And its not 103% anymore, its 123%. You want it, you pay it. That's the deal.

[IMHO]

So how would this affect the prices of eco-cars, once the excise rebate is finished? I imagine many will not be sold after the rebate has finished, especially if prices were to increase.'

No effect - the special eco-car excise tax rate of 17% is a part of a 5-year program - so long as each manufacturer hits the volume targets set by the program, they won't get hit with any additional taxes.

According to sources, the/an eco-car program will survive into 2016 as well, even though there's no mention int the article above.

[IMHO]

The ministry said those able to purchase such bikes are wealthy enough to pay higher taxes.

And its not 103% anymore, its 123%. You want it, you pay it. That's the deal.

Funny how taxes are dropping on luxury cars though... I guess there's not many motorcycles parked at the ministry

[IMHO]

12, 30 etc % of what? Tax collection based on what?

It's based on a table of MSRP prices each manufacturer submits to the excise tax dept.

Note that the actual rates applied are higher than the numbers advertised though - refer to this topic for info:

[Jitar]

For luxury cars > 3L or >220HP (currently 50%) it means less tax, but for most cars it means even more tax..

For those who want to do the math using more commonly available fuel efficiency numbers, here's a rough guide:

Gasoline:

150 gm/KM CO2 = 15.4 KM/L

200 gm/KM CO2 = 11.6 KM/L

Diesel:

150 gm/KM CO2 = 17.7 KM/L

200 gm/KM CO2 = 13.2 KM/L

Personally, I welcome the 10% saving.. now all I need is for Benz to import the GL63 AMG at gray market competitive prices

As Humphrey in Yes Minister would say, increasing prices of lower market cars and reducing the price of upper market cars is very courageous.

However I don't wee the lower rate for > 3L cars mentioned in the OP?

Am I missing something or is it mentioned elsewhere?

Wonder if a standard for measuring the CO2 emissions is defined.

[IMHO]

However I don't wee the lower rate for > 3L cars mentioned in the OP?

Am I missing something or is it mentioned elsewhere?

Oh my, you are correct - I was looking for the (missing) "more than 3,000cc" line and skimmed over the "not more than 3,000cc" part

OK, so the GL63 AMG needs to be downgraded to a GL350 Bluetec then - the removal of the 220HP threshold is still welcome though - plenty of <3L cars that currently attract the maximum excise rate due to HP

[Jitar]

Pity, looks like we are destined for similar cars and prices in the future. There was an article in the "other English Newspaper" with a comparison table showing the current and new taxes with more detail on +3L engines. Google "Emissions-based car tax approved".

It all looks very Thai style, there will be lots of fun interpreting the new rules if and when they come into effect.

Looks like Pickups and PPVs are going to get hit with more tax even if they meet the lower CO₂ limit.

The only benefit seems to be a reduction in tax on cars that meet the lower CO₂ limit.

[BSJ]

It's just a tax grab. If they really cared about the environment they would come down hard on all the dirty smelly buses and heavy vehicles already here, already poxing up the air we breath.

Put em off the road if necessary till they comply with Euro 3 standards.

[IMHO]

It's just a tax grab. If they really cared about the environment they would come down hard on all the dirty smelly buses and heavy vehicles already here, already poxing up the air we breath.

Put em off the road if necessary till they comply with Euro 3 standards.

Yep, no way were they going to structure it in such a way that they will receive less overall revenue.

I will happily take a tax cut from 111.1% ("50% rate") to 56.9% ("35% rate") on a future <=3,000cc but way more than 220HP car though

[thailandbeachisland]

Hello,

Can I know if it is going to change the price of German cars... ?

Thank you.

[IMHO]

Hello,

Can I know if it is going to change the price of German cars... ?

Thank you.

Some, yes,

For example, the Benz GL350 released 2 days ago for 9M Baht currently attracts 50% excise duty based on having > 220HP. Under the proposed 2016 regulations, it will attract 40% excise duty based on it's 209gm CO2. If they retune it to < 200gm CO2, that drops to 35%.

[thailandbeachisland]

Thank you, in interesting !

[MadMac]

More rice money coming in, fantastic

[Tmymaimee]

So why is the Tesla over 6 million baht with zero emissions in Thailand? I would buy one tomorrow if I could get one for the same price as home. Beautiful car to drive.

[Garry]

So why is the Tesla over 6 million baht with zero emissions in Thailand? I would buy one tomorrow if I could get one for the same price as home. Beautiful car to drive.

Perhaps it's because of when they catch fire from the simplest of front end fender benders.

[Tmymaimee]

Would they not be very inexpensive if they caught fire so easy? Perhaps slow down on the Mekhong whisky tonight up in Issan…..you're not making any sense.

[Garry]

Would they not be very inexpensive if they caught fire so easy? Perhaps slow down on the Mekhong whisky tonight up in Issan…..you're not making any sense.

Now you're just acting like a troll with inane comments. Do a Google search on Tesla fires in accidents. Check out Wrecked Exotics for Teslas in minor fender benders.

[IMHO]

So why is the Tesla over 6 million baht with zero emissions in Thailand? I would buy one tomorrow if I could get one for the same price as home. Beautiful car to drive.

Well, the Tesla only attracts 10% excise duty (as do all EV's and Hybrids). It starts off with 80% import duty, and ends up with 7% VAT as well, and inbetween there's a showroom to pay for and a lots of mouths to be fed from a very, very small amount of sales, so profit margins have to be insanely high.

[Tmymaimee]

You would think that the Tesla is exactly the type of vehicle Thai authorities would be trying to attract. With zero pollution, there should be a tax credit, not a duty. How they can allow an old bus to run around everyday spewing heavy, thick black smoke yet effectively put the Tesla beyond reach of most buyers is completely backwards.

[IMHO]

You would think that the Tesla is exactly the type of vehicle Thai authorities would be trying to attract. With zero pollution, there should be a tax credit, not a duty. How they can allow an old bus to run around everyday spewing heavy, thick black smoke yet effectively put the Tesla beyond reach of most buyers is completely backwards.

If you want to turn this around, petition Tesla to assemble in Thailand using at least 40% ASEAN sourced parts -then the 80% import duty disappears and prices drop.

Thailand govt's primary concern is the protection of it's automotive industry - which many here would disagree with. Those same people would also have to disagree with giving tax credits too though