Thailand to enforce new car tax scheme in 2016

[buksida]

Thailand’s government has approved a future restructuring of the country’s vehicle excise tax away from rates based on engine size to one dependent on the quantity of carbon dioxide emissions.

The new tax structure is due to take effect on January 1, 2016. The government is aware that car manufacturers were severely affected by last year’s floods, and are, at present, serving domestic demand, which has also been boosted by the government’s first-car scheme. However, it is anticipated that, from next year, exports will again become a major factor, and the new excise duties are designed to align Thailand’s automotive industry towards producing vehicles that meet global standards.

Under the present excise tax structure, tax rates increase according to engine size on the assumption that larger engines consume more fuel. For example, a passenger car with an engine of 2,000cc or less pays a tax of between 22% and 30%, whereas a car with an engine of more than 3,000cc pays 50%.

Even electric, fuel cell and hybrid vehicles currently pay a tax based on engine size – up to 3,000cc at a rate of 10%, and above 3,000cc at 50%.

It is recognised that, with the development of new technology, some larger engines are more fuel-efficient than older, smaller versions, and that the new tax structure should be based on carbon dioxide emissions. For example, while all larger vehicles with engine sizes above 3,000cc will still be charged at a 50% rate, an eco-car with emissions between 101-120g/km will be charged 17%, but at only 12% for even lower emissions.

Hybrid cars emitting no more than 100g/km will be taxed at 10%, rising to 20% for those releasing carbon dioxide at 101-150g/km, 25% at 151-200g/km, and 30% at more than 200g/km.

Passenger cars using natural gas or petrol, and with emissions of no more than 150g/km, will be charged a rate of 25%, with a 30% tax on those with emissions of 151-200g/km, and 35% for more than 200g/km.

While it was reported that most motor manufacturers were not against the principle of the vehicle tax reforms, they appear to be concerned that the three-year period to when the reforms take effect could be too short for their production plans to be adjusted, and that five years would have been better.

Source: Tax News

[VincentD]

Pete
I'm assuming that this is going to be the case for all cars registered after the proposed implementation date? If they decide to do a blanket scheme that will affect all cars on the road no matter when they were registered I don't even want to think about the ensuing chaos...

[Big Boy]

Pete????????

Surely, this is no different to the scheme they operate in the UK now. Newer car benefit greatly, where as owners of older cars pay dearly. The objective to rid the roads of the old dirt bags.

[Dannie Boy]

Pete????????

Surely, this is no different to the scheme they operate in the UK now. Newer car benefit greatly, where as owners of older cars pay dearly. The objective to rid the roads of the old dirt bags.

For quite some years most of the western world have been legislating for manufacturers to reduce emissions on new vehicles and there have been significant advances particularly over the last few years. Coupled with this the UK and a number of other countries have started to introduce progressive tax increases based on the higher emissions of gases (notably CO2 - Carbon Dioxide). This is bound to be followed by more and more countries as part of the Kyoto Protocol to reduce global warming.

[PeteC]

Pete????????

You rang?...... Pete

[Big Boy]

Pete????????

You rang?...... Pete

Just re-enforcing VincentD's post.

[Nereus]

Thailand’s government has approved a future restructuring of the country’s vehicle excise tax away from rates based on engine size to one dependent on the quantity of carbon dioxide emissions.

Well, as I read it this is EXCISE tax, nothing to do with road tax / registration. So therefore it will not have any affect on older cars, big, small, dirty or clean and already registered.

[STEVE G]

Pete
I'm assuming that this is going to be the case for all cars registered after the proposed implementation date? If they decide to do a blanket scheme that will affect all cars on the road no matter when they were registered I don't even want to think about the ensuing chaos...

Aren't those tax rates on vehicle purchase? I thought the annual road tax was on vehicle type but I could be confused on that.
Incidentally, I'm surprised at the large numbers of hybrid vehcles now on the roads in Thailand. I don't know if people are buying them because of economy, the environment, because they're trendy in California or for ease of driving in traffic congestion but there are more of them than in Europe.
A company here where I work in Europe is operating a fleet of Toyota Prius taxis so the economics must work if you're doing the right type of driving.
Peugeot-Citroen have an interesting compressed air/gasoline hybrid in development that gets around all the problems of weight, life and costs of batteries and will be good for 117mpg, on the road by 2016.

[Rider]

Pete????????

Surely, this is no different to the scheme they operate in the UK now. Newer car benefit greatly, where as owners of older cars pay dearly. The objective to rid the roads of the old dirt bags.

The 'old dirt-bags' as you call them are often of a higher standard and build quality than the newer junk that's being churned out nowadays.

[Big Boy]

I wouldn't dare comment on the build quality - my mechanical knowldge could be written on the back of a postage stamp. However, I'm in Isaan at the moment, and even a mechanical ignoramus like me can spot that 50% of the vehicles here are dirt bags producing a lot of pollution through their exhausts.

[Frank Hovis]

BB That filth coming out the exhaust is called 'greener, cleaner energy' or as we used to call them 'dirty, smelly, sooty diesels', but with their higher mileage per litre and therefore reduced CO2 emissions they must be clean and green. Ignore the fact that the soot is tiny carcinogenic nanoparticles, those engines are saving the planet, if not the population.