New auto tax under green economy ambition
The Finance Ministry is revising the auto excise tax with the key aim to cut carbon dioxide emission, said Deputy Prime Minister and Finance minister Kittiratt Na-Ranong.
At the annual conference of the National Economic and Social Development Board, he also said that the ministry is currently in talks with other state agencies to introduce environment taxes, in support of Thailand's aim to become a green economy.
On the new auto tax rate, he said that the government will allow car markers to adjust themselves to the new auto tax between three or four years.
"The new tax rate will depend on CO2 emission of each model, not the engine as it is now," he said. "Vehicles with low emission will then be subjected to low tax rates."
Under the current structure, some large car models with lower emission than small cars' are subjected to high rate at present.
Kittiratt added that the government would also provide additional incentives to electric motorcycles, to promote more environmental-friendly vehicles. The government recently announced the zero per cent excise tax rate for electric motorcycles, but it has so far failed to drawn public supports.
