First-Car Tax Rebates Expected To Hit Bt85B: Thailand

[webfact]

First-car tax rebates expected to hit Bt85 bn

THE NATION

BANGKOK: -- The Excise Department expects to dole out Bt85 billion in tax rebates for the first-car scheme, 13 per cent more than the earlier estimate of Bt75 billion, because of the high popularity of the programme.

Department director-general Somchai Poolsawat said in an interview with Krungthep Turakij TV yesterday that the number of vehicle purchases qualifying for the rebate was 1.19 million units as of December 27.

When the government launched this policy, it targeted only 500,000 units.

Car buyers applying for the rebate have until 4.30pm on Monday to do so.

Internet applications will be cut off at midnight on that day.

Since the launch of the first-car programme in 2011, the Excise Department has paid about 30,000 rebates worth Bt2.3 billion, Somchai said.

Easing the blow

"We pay the rebate after buyers have had the car for one year.

"This means those who bought the car this year will get their tax refund next year or in 2014," he said.

He added that these rebates would not affect the government budget because the department had collected excise tax from the carmakers at point of sale.

The gradual payment of the rebates through 2014 would also ease the blow to the public purse.

-- The Nation 2012-12-29

[noitom]

And the majority of Thais will be selling their car after they get the rebate and then using the rebate to finance a new car. So this plan probably was a good kick for the economy or at least car and petrol sales. Fageddabout the pollution boost.

[ChrisY1]

The Government launched the program with 500000 vehicles estimated to be purchased...1.19 million now purchased....very clever research undertaken for the program!

[Hugo6]

And the majority of Thais will be selling their car after they get the rebate and then using the rebate to finance a new car. So this plan probably was a good kick for the economy or at least car and petrol sales. Fageddabout the pollution boost.

youre just whiinin in order to whine

the owner has to keep the car and cant sell it right away

pollution boost? come on. thats lame.

[Hugo6]

The Government launched the program with 500000 vehicles estimated to be purchased...1.19 million now purchased....very clever research undertaken for the program!

or a successful program

[Briggsy]

How does the government ensure the owner doesn't sell the car after getting the rebate? Not sure how this scheme works.

[chiangmaikelly]

And the majority of Thais will be selling their car after they get the rebate and then using the rebate to finance a new car. So this plan probably was a good kick for the economy or at least car and petrol sales. Fageddabout the pollution boost.

That certainly is a unsubstantiated rumor. Care to provide any links to objective folks who also hold that opinion?

Edited December 29, 2012 by chiangmaikelly

[Thai at Heart]

How does the government ensure the owner doesn't sell the car after getting the rebate? Not sure how this scheme works.

This is the kicker. They have limits on things like rtf/ltf, but I have no knowledge of how they claw back money if you liquidate before the limit is up.

[naboo]

Cannot sell within 5 years as they won't let you change the name in the Tabien Rot. However, pay 7000b a month, nothing down, 100,000b rebate after you've paid 84,000b then stop paying the bank. Bank repossesses car you've driven for a year, you made 16,000b, the bank is screwed.

[chiangmaikelly]

Cannot sell within 5 years as they won't let you change the name in the Tabien Rot. However, pay 7000b a month, nothing down, 100,000b rebate after you've paid 84,000b then stop paying the bank. Bank repossesses car you've driven for a year, you made 16,000b, the bank is screwed.

Do you know anyone who has done this? Cause this is a Thai Visa old wives tale that has been around for a year.

[Nisa]

Cannot sell within 5 years as they won't let you change the name in the Tabien Rot. However, pay 7000b a month, nothing down, 100,000b rebate after you've paid 84,000b then stop paying the bank. Bank repossesses car you've driven for a year, you made 16,000b, the bank is screwed.

The extremes folks will take to try to feed their doom and gloom and faux superiority attitudes??? Lol, a person whose credit and income allows them to buy a car with no money down and can afford 7,000 a month (an unrealistic number used to help the doom and gloom view) is going to destroy their credit all for 16k baht as well as do something that is just dishonest.

[whybother]

Cannot sell within 5 years as they won't let you change the name in the Tabien Rot. However, pay 7000b a month, nothing down, 100,000b rebate after you've paid 84,000b then stop paying the bank. Bank repossesses car you've driven for a year, you made 16,000b, the bank is screwed.

The extremes folks will take to try to feed their doom and gloom and faux superiority attitudes??? Lol, a person whose credit and income allows them to buy a car with no money down and can afford 7,000 a month (an unrealistic number used to help the doom and gloom view) is going to destroy their credit all for 16k baht as well as do something that is just dishonest.

"as well as do something that is just dishonest."

I was agreeing with you up until that point. I have seen too many examples to suggest that some people would try that plan just for a few of thousand baht.

[smileplur]

Cannot sell within 5 years as they won't let you change the name in the Tabien Rot. However, pay 7000b a month, nothing down, 100,000b rebate after you've paid 84,000b then stop paying the bank. Bank repossesses car you've driven for a year, you made 16,000b, the bank is screwed.

This logic doesn't make any sense at all. Anyone who would be able to secure a loan with nothing down would have to have sizable assets. A person with enough money to qualify for this kind of loan would not shrug off a 7,000 baht payment because it would be nothing for them. More realistically, they would be looking at a down payment of 20-30%. That's going to run about 150,000 baht before you ever put the key into the ignition of your new car (Honda City in my example, as I just bought one).

[Fgis]

Is this govt stupid to push people who cannot even buy gazoline to buy a brand new car ?

Do they feel like they are in US ?

Show me other countries where people making loan for thngs that are not essential and even usuless didn't collapse ?

I even wonder if the second hand cars price will loose value since hundred thousands of people will be selling their car soon...

[Hugo6]

this plan spurred incremental demand and stimulated a local industry and the thai economy in a year when the rest of the world was sucking wind.

it was a revenue neutral short term boost to the economy which worked.

obviously an unpopular failed populist policy of the pt government

[billd766]

this plan spurred incremental demand and stimulated a local industry and the thai economy in a year when the rest of the world was sucking wind.

it was a revenue neutral short term boost to the economy which worked.

obviously an unpopular failed populist policy of the pt government

Just out of curiosity do you know how much the taxation department makes per car. If it is less than the 100,000 baht tax rebate given to the buyers then it is just another loss making project to keep the punters happy.

The government needs to gain 119,000,000 baht in order just to break even and if they don't and they make a loss would you call that a successful project?

[MESmith]

this plan spurred incremental demand and stimulated a local industry and the thai economy in a year when the rest of the world was sucking wind.

it was a revenue neutral short term boost to the economy which worked.

obviously an unpopular failed populist policy of the pt government

Just out of curiosity do you know how much the taxation department makes per car. If it is less than the 100,000 baht tax rebate given to the buyers then it is just another loss making project to keep the punters happy.

100,000 bt is the max refund. It varies with the model of car. I believe my wife will receive 86,000 baht.

[Hugo6]

this plan spurred incremental demand and stimulated a local industry and the thai economy in a year when the rest of the world was sucking wind.

it was a revenue neutral short term boost to the economy which worked.

obviously an unpopular failed populist policy of the pt government

Just out of curiosity do you know how much the taxation department makes per car. If it is less than the 100,000 baht tax rebate given to the buyers then it is just another loss making project to keep the punters happy.

The government needs to gain 119,000,000 baht in order just to break even and if they don't and they make a loss would you call that a successful project?

all ive read says the plan is revenue neutral

even the nation says so, so

are you saying it aint revenue neutral

then prove it

uh, ... please

and when you finish with that then explain why it has to be revenue neutral to be a successful project

lots of important successful things governments do arent revenue neutral

[Hugo6]

this plan spurred incremental demand and stimulated a local industry and the thai economy in a year when the rest of the world was sucking wind.

it was a revenue neutral short term boost to the economy which worked.

obviously an unpopular failed populist policy of the pt government

Just out of curiosity do you know how much the taxation department makes per car. If it is less than the 100,000 baht tax rebate given to the buyers then it is just another loss making project to keep the punters happy.

100,000 bt is the max refund. It varies with the model of car. I believe my wife will receive 86,000 baht.

good for her

curious, what did she buy

[rubl]

If I understand the scheme correctly a first-time car buyer who buys a Thai made car with a price no more than up to one million needs to keep the car for five years but after one year already gets the tax rebate of 100,000. This 100,000 is also the maximum refunded.

If this is correct that would mean with 1.25 million new cars, a maximum of 125 billion is rebated. As the excise tax is collected at point of sale (upon delivery?) the Excise Department will probably make a reservation from that which would explain why there is no separate government budget required.

[mortenaa]

They will pay it back over a period of 5 years, maximum 20 000 per year. If you sell the car, payments will stop.

[smileplur]

They will pay it back over a period of 5 years, maximum 20 000 per year. If you sell the car, payments will stop.

Not quite. It is not spread out. It is paid out after a year of ownership as stated previously in this thread.

[chiangmaikelly]

They will pay it back over a period of 5 years, maximum 20 000 per year. If you sell the car, payments will stop.

Not quite. It is not spread out. It is paid out after a year of ownership as stated previously in this thread.

So who is correct?

[mortenaa]

They will pay it back over a period of 5 years, maximum 20 000 per year. If you sell the car, payments will stop.

Not quite. It is not spread out. It is paid out after a year of ownership as stated previously in this thread.

That's not the information I got from the Toyota dealer we bought a Vios from. I'll trust that information before I'll get another verifiable source.

[rubl]

When in doubt search

2012-10-06

"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."

http://www.thaivisa....age__hl__ first

[smileplur]

They will pay it back over a period of 5 years, maximum 20 000 per year. If you sell the car, payments will stop.

Not quite. It is not spread out. It is paid out after a year of ownership as stated previously in this thread.

That's not the information I got from the Toyota dealer we bought a Vios from. I'll trust that information before I'll get another verifiable source.

My source of information comes from 3 places:

1) K-Motors - We also looked at buying a Vios from their Sukhumvit Branch.

2) Honda Phraram 4 (Rama IV Honda) - Where we purchased our Honda City. Saleswoman by the name of Aom and other staff at the dealership.

3) Excise Tax Department (Silom Branch) - Where we submitted the paperwork for the rebate. This final source is the office who handles the claim and payment of the tax rebate. I will take their word for it. If you have any doubt, feel free to go down there or to one of their other branches and ask. They took a copy of the bank book to deposit the money into after a year!

[smileplur]

That's not the information I got from the Toyota dealer we bought a Vios from. I'll trust that information before I'll get another verifiable source.

Let me see if I have this correct. You are going to trust a car salesperson and disregard what the Excise Tax Department says regarding how and when they will distribute the funds associated with the rebate? Have you applied for the rebate? If not, you are out of time buddy. Surely, you would have visited to office to apply and received the information from someone more reliable that a car salesperson.

Edited December 29, 2012 by smileplur

[ubonrthai]

Because that's what everyone needs in this country. More debt.

[woody087]

You get it after one year.wife is due to get about 70 000 in April.

Sent from my HTC Legend

[chiangmaikelly]

Because that's what everyone needs in this country. More debt.

In comparison to most countries the consumer debt in Thailand is? Do you know? Or are you just blowing smoke?