Windfall from new car-tax 'not the motive'

[webfact]

Windfall from new car-tax 'not the motive'
ERICH PARPART
THE NATION

BANGKOK: -- APART FROM protecting the environment and improving people's health, the Finance Ministry's Excise Department has estimated that the government will be able to collect around Bt7 billion to Bt8 billion more revenue next year from the restructuring of excise taxes on cars and trucks based on their emissions instead of engine size.

The estimate is based on a projection that the Thai auto industry will be able to sell around 800,000 units domestically in 2016, compared with this year's estimated of around 750,000 units.

"Nevertheless, the intention of the tax is to help protect the environment and the health of Thai citizens and to help with the development of the automobile industry, not because of the expected increase in tax revenue," Somchai Sujjapongse, permanent secretary of the Finance Ministry, said in a joint press conference with the Industry Ministry yesterday.

The 2012 Cabinet resolution will come into effect on January 1, 2016, whereby automobiles releasing more than 200 grams of carbon dioxide per kilometre will be taxed at 35-40 per cent of a vehicle's price, compared with only 14 per cent for those classified as eco-friendly models.

Meanwhile because of the changes in tax structure, the prices of passenger cars with 1,200cc engines is estimated to decrease by around Bt50,000 as the tax rate has decreased from 17 per cent to 14 per cent.

Price increases

Based on the tax rate increasing from 25-30 per cent to 35-40 per cent, the prices of cars with 1,500cc engines are estimated to increase by Bt85,000; by Bt95,000-Bt110,000 for 1,800cc models; by Bt110,000-Bt160,000 for 2-litre cars; and by Bt160,000-Bt500,000 for those over 2 litres.

Imported supercars are already taxed at a maximum of 50 per cent and there is no change there.

Industry Ministry permanent secretary Athit Wutkaro has said the ministry has concluded talks with automobile manufacturers and importers that had expressed concerns regarding the excise restructuring. They believed that the auto market in Thailand would likely face a big contraction due to higher production costs and prices of vehicles.

He said impact would be minimal, since the increase in tax is only around 3-5 per cent and private operators have had three years to prepare for the measure. Meanwhile the ministry introduced an "ECO Sticker" in October pertaining to carbon-dioxide emissions to help car buyers identify environmentally friendly products.

All cars sold from next month onwards will have these ECO Stickers. They will be issued by the Excise Department in cooperation with the Customs Department and the Industry Ministry. There will be a random inspection every year to keep track of the emission levels of each model.

A total of 667 car models, about 90 per cent those in the Thai industry, have already received the stickers in preparation for sales next year.

The process of acquiring the ECO Sticker has been cut to about a week after the inspection period of around 26-46 days based on the type of sticker (domestically manufactured or imported), the Industry Ministry says.

Source: http://www.nationmultimedia.com/business/Windfall-from-new-car-tax-not-the-motive-30274620.html


-- The Nation 2015-12-10

[Aussieroaming]

Excellent, more incentive to keep walking

[sirineou]

if that's the case then all the tax income should be earmarked for pollution mitigation.

[Lunchbob]

It is pretty easy to put a sticker on a car.

[Langsuan Man]

Well if they handle emissions testing like they do everything else, what is there to worry about, 100 Baht will get you a sticker

[snowgard]

The estimate is based on a projection that the Thai auto industry will be able to sell around 800,000 units domestically in 2016, compared with this year's estimated of around 750,000 units.

Thai logic at it finest!!! 555

If car prices gone up 14-40% they can sale 50.000 units more???

Unbelievable!!!

I believe they can be happy if can sell more as 300.000 cars next year!!!

Edited December 10, 2015 by snowgard

[steve187]

quote ''Meanwhile because of the changes in tax structure, the prices of passenger cars with 1,200cc engines is estimated to decrease by around Bt50,000 as the tax rate has decreased from 17 per cent to 14 per cent.''

how do they get decrease of bt50.000 when its only a 3% cut

[shamrock09]

The estimate is based on a projection that the Thai auto industry will be able to sell around 800,000 units domestically in 2016, compared with this year's estimated of around 750,000 units.

Thai logic at it finest!!! 555

If car prices gone up 14-40% they can sale 50.000 units more???

Unbelievable!!!

I believe they can be happy if can sell more as 300.000 cars next year!!!

I get the price reduction to be in the region of THB 15,000! (3%) for a car powered by a 1200 CC engine or less. I bought a new Vios last year during a special promotion and got a THB 100,000 reduction in price. I am sure they can have a few more of those to shift stock. However, the second hand car yards seem to be overflowing with vehicles for sale. Maybe it's time to give the second-hand market a boost.

[KhunBENQ]

Yes, 15000 Baht based on 500'000 before tax.

"muen - ha" is a shortcut for 15000

"ha - muen" is 50000

Maybe the translator had a bad day

[snowgard]

But 1200cc cars only good for students, office worker, second car, ..... or living in big cities!!!

Still to now I never saw a pickup with 1200cc!!!

[KhunBENQ]

Don't be too concerned if you love pickups.

I must admit that I still don't fully understand what will happen.

I am happy if someone proofs me wrong, BUT:

obviously the age of the pickups is still not coming to an end.

They were and will be highly preferred with much lower excise tax rates.

Would have surprised me if otherwise.

Would have been a trigger for uprise.

See the picture below.

Seems like pickups little affected.

And with this, the whole "environment" arguments are uncovered as pure hypocrisy.

Its nothing but another "luxury tax"!

It does little to improve air quality,

Stinking diesel fumes will continue to plague your nose and plaster your lungs.

Its indeed a promotion for even more pickups as urban shopping cars

Edited December 10, 2015 by KhunBENQ

[elgordo38]

if that's the case then all the tax income should be earmarked for pollution mitigation.

I guess with all that extra tax income they can cancel the coal fired electric plants on the drawing board and go solar. Dah yes folks the sun does shine here constantly and the hydro electric generating system is well dubious at best with the drought in full swing. You just cannot keep robbing Peter to pay Paul. In the long run it just does not work. Look at TV pictures of Beijing and they do not want to phase out coal till 2030. Its no longer about producing a good quality of life for people its all about the cheapest way of doing things.

[JohnnyJazz]

The estimate is based on a projection that the Thai auto industry will be able to sell around 800,000 units domestically in 2016, compared with this year's estimated of around 750,000 units.

Thai logic at it finest!!! 555

If car prices gone up 14-40% they can sale 50.000 units more???

Unbelievable!!!

I believe they can be happy if can sell more as 300.000 cars next year!!!

Agree with snowgard, A number of people (including myself) who thought about buying a car in the near future are now rushing to complete the deal before the end of the year to avoid the new tax. That will push for more sales this year but means less sales next year, not more.

[Robbie Dye]

Nicer if they took the ancient oil burning wrecks aka pickups off the roads.

[willyumiii]

The new tax was enough to convince me to buy my new car nowand not wait a month.

I will pick it up on Saturday.

[PeeJay1959]

if that's the case then all the tax income should be earmarked for pollution mitigation.

I guess with all that extra tax income they can cancel the coal fired electric plants on the drawing board and go solar. Dah yes folks the sun does shine here constantly and the hydro electric generating system is well dubious at best with the drought in full swing. You just cannot keep robbing Peter to pay Paul. In the long run it just does not work. Look at TV pictures of Beijing and they do not want to phase out coal till 2030. Its no longer about producing a good quality of life for people its all about the cheapest way of doing things.

Just like Victorian Britain, and the smogs lasted until the 1950's

[JAS21]

The estimate is based on a projection that the Thai auto industry will be able to sell around 800,000 units domestically in 2016, compared with this year's estimated of around 750,000 units.

Thai logic at it finest!!! 555

If car prices gone up 14-40% they can sale 50.000 units more???

Unbelievable!!!

I believe they can be happy if can sell more as 300.000 cars next year!!!

Agree with snowgard, A number of people (including myself) who thought about buying a car in the near future are now rushing to complete the deal before the end of the year to avoid the new tax. That will push for more sales this year but means less sales next year, not more.

So JJ is it a dog, a car, or both ...she won then ..........

But agree, I didn't want to change until next year but wasn't going to pay an extra 160,000+ so did it this year.

[kannot]

so first we had the 100k off to buy a new car now we have maybe 100k on......got to claw it back somehow....more global warming ball cocks

[kannot]

Nicer if they took the ancient oil burning wrecks aka pickups off the roads.

nope now they will run them forever............although many here look like that already

[steve187]

The new tax was enough to convince me to buy my new car nowand not wait a month.

I will pick it up on Saturday.

what did you get, and how much do you think it was going to increase next year

[willyumiii]

The new tax was enough to convince me to buy my new car nowand not wait a month.

I will pick it up on Saturday.

what did you get, and how much do you think it was going to increase next year

We got a Toyots Vios and were told it will be about 80,000 more in 2016.

We got foa a little less than 600,000.

[Langsuan Man]

The new tax was enough to convince me to buy my new car nowand not wait a month.

I will pick it up on Saturday.

what did you get, and how much do you think it was going to increase next year

We got a Toyots Vios and were told it will be about 80,000 more in 2016.

We got foa a little less than 600,000.

Did you have to buy it now and take delivery before the end of 2015 or did you just have to order before 2016 ?

I ask because in my limited experience of buying a new car in Thailand, buying is easy but getting it delivered can sometimes be a long drawn out affair

[h90]

So the extra money they earn they use to make the mass transports (Train, Skytrain, Subway) cheaper, right?

They don't use it only for more corruption, or?

If they really would like to do something than they would make the gasoline more expensive....That brings people to save gasoline.

[h90]

But 1200cc cars only good for students, office worker, second car, ..... or living in big cities!!!

Still to now I never saw a pickup with 1200cc!!!

Mazda RX-8

[willyumiii]

The new tax was enough to convince me to buy my new car nowand not wait a month.

I will pick it up on Saturday.

what did you get, and how much do you think it was going to increase next year

We got a Toyots Vios and were told it will be about 80,000 more in 2016.

We got foa a little less than 600,000.

Did you have to buy it now and take delivery before the end of 2015 or did you just have to order before 2016 ?

I ask because in my limited experience of buying a new car in Thailand, buying is easy but getting it delivered can sometimes be a long drawn out affair

I believe the cut off date was 3 december for orderiing at this years price.

BTW, it was not ready yesterday..looks like next Tuesday or Wednesday for pick up.

[apetley]

But 1200cc cars only good for students, office worker, second car, ..... or living in big cities!!!

Still to now I never saw a pickup with 1200cc!!!

[snowgard]

Hahaha...!!! But better as NO CAR!!!

[snowgard]

I like the Mazda RX-8 but because it is a import car it's to expensive.

Looks like Mazda Thailand don't offer this model here.