Small cars emitting low levels of carbon dioxide may be granted excise tax reductions, but large cars with similarly low levels of gas output may not receive same benefit.
“As we know, cars with large engines are expensive and only rich people can buy them. Why do we have to give tax privileges to them? It is against our principles,” said Benja Louischaroen, director-general of then Excise Department.
“We’re establishing a ceiling on engine size. Cars with engines above the ceiling will not get the tax break even if they emit low levels of carbon dioxide.”
She said 2,000cc should be the limit.
Currently, engines larger than 2,000cc are taxed 30%, while engines larger than 3,000cc are taxed 50%.
Cars that emit less than 150 grammes/kilometre of carbon dioxide will receive a 5% tax break.
Those that emit more than 200 g/km will pay an additional 5%.
Piengjai Kaewsuwan, president of the Thai Automotive Industry Association, said the global trend is to calculate tax on emissions without regard to engine size.
“The engine size is probably still an issue for the government, as the state wants to maintain tax revenue,” said Mrs Piengjai.
Mrs Benja said so far in the first-time car buyer tax rebate scheme, 6,000 claims for the benefit have been filed.
The state expects the rebate will be requested by 500,000 car buyers, and the scheme will cost 30 billion baht.
First-time car buyers who purchase locally made vehicles with engines not exceeding 1,500cc are eligible for a rebate of excise taxes paid on that car.
They receive cash back, but the rebate is limited to 100,000 baht.
Mrs Benja added that the programme missed its target due to the flood crisis.
