New emissions tax won't hurt car sales much: Thai minister

[webfact]

New emissions tax won't hurt car sales much: minister
THE NATION

BANGKOK: -- INDUSTRY Minister Chakramon Phasukavanich has said the restructuring of automobile excise tax to include an emissions levy that will become effective from January 1 next year should not have a significant impact on people's decisions to buy a new car.

Consumers should not worry too much since the new tax rates will apply only to new models, he said yesterday.

Chakramon said it would not be fair for the new tax rates to applied to old car models and consumers would benefit, since automakers would compete more to deliver quality and would give consumers more choices.

Some vehicles may cost more

Consumers who choose energy-saving cars will be charged less tax, he said.

Piengjai Kaewsuwan, president of the Thai Automobile Industry Association and chairwoman of the Asean Automotive Federation, said the new tax might make some types of vehicles slightly more expensive, such as pickup trucks and commercial vehicles.

If the tax rate is raised by 5-10 per cent, the retail price might be raised by 2 per cent, she said.

Nevertheless, she insisted the new excise structure would not affect the overall car industry.

Carmakers have adjusted to the government's new policy and the public should benefit, since automakers will produce better-quality vehicles that emit less carbon dioxide, she said.

This is in line with the world trend, which has tilted towards energy-efficient vehicles that are more friendly to environment, she said.

Piengjai said the Thai automotive industry should resume its growth this year, thanks to the improvement of the overall economy. The government expects gross domestic product to grow by 3-4 per cent this year.

The annual Bangkok Inter-national Motor Show, which kicks off late this month, will confirm if the economy is really recovering, she said.

Source: http://www.nationmultimedia.com/business/New-emissions-tax-wont-hurt-car-sales-much-ministe-30256141.html


-- The Nation 2015-03-17

[ColdSingha]

more taxes? more expensive cars? more happiness back to the people?

Edited March 16, 2015 by ColdSingha

[NE1]

I thought the older vehicles would be the ones spewing out the " non friendly emissions "

I see vehicles everyday with black exhaust fumes trying to suffocate the motor cyclist behind.

[kotsak]

Opposite my apartment building on Rama 3 there is, or there was, a car storage place which belongs to Honda. It used to be packed with cars waiting to be delivered to the dealers. A lot of people used to be working there preparing the vehicles (washing, cleaning, etc) and then loading them on trailers. Now the place is dead empty, they have cleared the cars long time ago and no soul in sight, not even a security guard. It used to be very busy for the last 2-3 years.

I've attached a photo as well. The car park in front and the warehouse at the back (with the open roof) were used to be filled with cars. Not sure if the covered area buidlings were being used as well. Either they have moved operations elsewhere in the town, which I doubt, or things are really gone tits up.

[trogers]

What hurts car sales is lack of further credit. They just don't extend credit to those who are drowning with debts.

Those with little debts don't seem to want credit. Heads are scratching, why?

Prudence! That's why they have little debts in the first place.

[h90]

more taxes? more expensive cars? more happiness back to the people?

Thailand has how many provinces with how many Governors who behalf like small kings, even if they wouldn't be corrupt with how many staff.......

If you don't increase taxes all the time you couldn't finance that.....Long way to go for Thailand till it is like Europe.....

(these many provinces made perfect sense if you need to travel many days per horse to get the news from Bangkok and they must be small to allow communication within, but since radio-signals were discovered a few years ago it isn't necessary anymore......)

[whybother]

They can't hurt car sales much more, can they?

[SiSePuede419]

If Thais could figure out how to build recyleable electric car batteries and cheap solar panels, we wouldñ't be having this discussion...

[jerojero]

more taxes? more expensive cars? more happiness back to the people?

Thailand has how many provinces with how many Governors who behalf like small kings, even if they wouldn't be corrupt with how many staff.......

If you don't increase taxes all the time you couldn't finance that.....Long way to go for Thailand till it is like Europe.....

(these many provinces made perfect sense if you need to travel many days per horse to get the news from Bangkok and they must be small to allow communication within, but since radio-signals were discovered a few years ago it isn't necessary anymore......)

Too many Provinces and thus too many government offices (fiefdoms). USA has 320 million people and 52 States, Canada with 35 million and 10 Provinces. But Thailand with 72 Provinces for only 69 million people of which 10 concentrated in Bangkok.

[trogers]

more taxes? more expensive cars? more happiness back to the people?

Thailand has how many provinces with how many Governors who behalf like small kings, even if they wouldn't be corrupt with how many staff.......

If you don't increase taxes all the time you couldn't finance that.....Long way to go for Thailand till it is like Europe.....

(these many provinces made perfect sense if you need to travel many days per horse to get the news from Bangkok and they must be small to allow communication within, but since radio-signals were discovered a few years ago it isn't necessary anymore......)

Too many Provinces and thus too many government offices (fiefdoms). USA has 320 million people and 52 States, Canada with 35 million and 10 Provinces. But Thailand with 72 Provinces for only 69 million people of which 10 concentrated in Bangkok.

Because it takes 5 to change a light bulb...

[Srikcir]

"the Thai automotive industry should resume its growth this year, thanks to the improvement of the overall economy. The government expects gross domestic product to grow by 3-4 per cent this year."

Sorry Charlie, but Thailand will be lucky to get 2.5% GDP growth. Export of autos will be flat and worsening household debt will not help domestic consumption. But in a twisted way, new emmissions tax actually won't hurt car sales. Sales will be hindered by so many other problems over global and Thailand economies, there won;t be enough car sales to generate much emmissions tax.