Auto industry calls for delay in new carbon tax

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Auto industry calls for delay in new carbon tax
The Nation

BANGKOK: -- KEY PLAYERS in the automotive industry have urged the government to postpone restructuring excise taxes on cars and trucks based on their CO2 emissions.

When a 2012 Cabinet resolution becomes effective on January 1, 2016, automobiles releasing more than 200 grams of CO2 per kilometre will be taxed at a rate of up to 40 per cent of a vehicle's price compared to only 17 per cent for those classified as eco-friendly models.

During yesterday's first "Prime Minister Meets CEOs" event at Government House, top executives at Mazda and Ford producer AutoAlliance and the CEO of Mazda Sales Thailand told Prime Minister Prayut Chan-o-cha that carmakers need another two or three years to adjust to the new tax structure due to the ongoing domestic auto market slowdown.

The latest figures show that Thailand's overall auto sales dropped 14.6 per cent in the first nine months compared to the same period last year.

If the tax restructuring is enforced as planned on January 1 next year, the auto market in Thailand would likely face a big contraction due to higher production costs and prices of vehicles, according to the CEOs who met with the prime minister and other economic ministers.

Deputy Premier Somkid Jatusripitak said the Prime Minister had instructed Finance Minister Apisak Tantivorawong to consider the auto industry's request.

As a result of higher excise taxes, many new cars and trucks in Thailand will become more expensive next year unless they are eco-friendly cars and release CO2 less than 100 grams per kilometre.

On its investment plan in Thailand, Mazda executives said the company will go ahead with the plan to invest in a new engine factory in Rayong.

They also said Thailand is positioned as one of Mazda's four production facilities worldwide for exports to European, Australian and Asean markets.

Deputy Premier Somkid said the government will consider expanding transport infrastructure on the Eastern Seaboard and Rayong to accommodate the factory expansions of the automotive industry and other industries.

The infrastructure expansion includes the land transport link with the deep-sea port, he said.

Besides Ford and Mazda, Prayut and the economic ministers also met top executives from Mitsubishi Motor, Seagate Technology, Mitsubishi Electrics and Thai Samsung Electrics as the government hopes the "Prime Minister meets CEOs" events will help boost foreign investor confidence in Thailand.

Also at the meeting were three economic ministers - Industry Minister Atchaka Sibunruang, Commerce Minister Apiradi Tantraporn and Deputy Commerce Minister Suvit Maesincee.

Prayut said the government is implementing policies to strengthen Thailand on the world stage and urged multinational companies to expand their investments in the country.

Prayut also told the CEOs that Thailand is accelerating negotiations with other countries to push ahead the Regional Comprehensive Economic Partnership - free trade agreement covering the 10 Asean nations as well as China, Japan, Korea, India, Australia and New Zealand.

He said the Commerce Ministry is conducting a detailed study on the pros and cons of joining the US-led Trans-Pacific Partnership, another free trade agreement.

Source: http://www.nationmultimedia.com/business/Auto-industry-calls-for-delay-in-new-carbon-tax-30271675.html


-- The Nation 2015-10-27

[canuckamuck]

CO2 is plant food, why don't the give a out a subsidy for increasing crop production. How many grams of CO2 per hour do humans produce. Shall we be taxed to breathe now?

The whole world has gone mad.

[bangkokheat]

carbon tax worked well in australia

[teatree]

Not long ago, on this very forum, I was called a tin foil hat wearing kook for suggesting that a carbon tax was on the horizon.

A tax on plant fertilizer. A tax on what people exhale. People are so dumb.

[sirineou]

CO2 is plant food, why don't the give a out a subsidy for increasing crop production. How many grams of CO2 per hour do humans produce. Shall we be taxed to breathe now?

The whole world has gone mad.

BS is also good fertilizer,

Perhaps why you guys like Trump so much

Edited October 27, 2015 by sirineou

[BSJ]

Instead of a new tax on the state of the art vehicles of today how about a tax on the old clunkers I see all over the country belching out huge volumes of crap???

That's the lot, no exceptions.

[Cake Monster]

More worrying for the Government, should be the fact that the Auto Sector is strongly urgeing Thailand to join the TPP without delay.

The failure to join the TPP, will surely end in tears for Thailand as a major manufactureing center for Automobile Business, resulting in the loss of thousands of jobs, and an incalculable amount of lost revenue for the Government.

[StefanBBK]

I just frantically looked at various specs for a new car and CO2 emissions are not listed....

[Assurancetourix]

Maybe it's a Tesla one ?

[smedly]

CO2 is plant food, why don't the give a out a subsidy for increasing crop production. How many grams of CO2 per hour do humans produce. Shall we be taxed to breathe now?

The whole world has gone mad.

The internal combustion engine was never part of natures plan, neither was deforestation or huge power plants

Although I do believe nature has a way of correcting itself - maybe over the next couple of hundred years

[Tywais]

I just frantically looked at various specs for a new car and CO2 emissions are not listed....

See if this calculator works for you - http://carfueldata.dft.gov.uk/search-new-or-used-cars.aspx

[ignis]

Appears this tax is almost here....

Yet managers have no idea.......... as said in another post will be changing the pickup soon, so 4 different Mazda dealership within the last couple of weeks....

1 = will put the price up about 150,000 baht..

2 = will put the price up about 50,000 baht..

3 = will put the price up about 10,000 baht..

4 = he is a customer + a Mazda dealership, said on the phone yesterday, will make no difference in price of single Cab or Open Cab... the price increase will be on the Cab 4...

Also looked at other trucks, all had different views of the New price from January 2016.... Isuzu saying they will be the only truck in Thailand with no higher price because of the All new 1.9 engine....

So the only sure thing is one of the Dealers will be correct..

[SoilSpoil]

More worrying for the Government, should be the fact that the Auto Sector is strongly urgeing Thailand to join the TPP without delay.

The failure to join the TPP, will surely end in tears for Thailand as a major manufactureing center for Automobile Business, resulting in the loss of thousands of jobs, and an incalculable amount of lost revenue for the Government.

Vietnam won't mind.

[Ulic]

Sure raise the tax to 40% if that is what you feel is right and will help you get to where you

want to be on carbon emissions, but then lower the tax rate to zero for cars that help you

meet those target rates.

[Thai at Heart]

Fact is, Thailand encourages people to buy large pick ups instead of smaller less guzzling city cars. What does the Thai industry produce mainly? Pick ups. Someone didn't remember they got a big brown envelope to come up with favourable taxes for pick ups

[sirineou]

CO2 is plant food, why don't the give a out a subsidy for increasing crop production. How many grams of CO2 per hour do humans produce. Shall we be taxed to breathe now?

The whole world has gone mad.

The internal combustion engine was never part of natures plan, neither was deforestation or huge power plants

Although I do believe nature has a way of correcting itself - maybe over the next couple of hundred years

yes by making as extinct