Bt30 billion refunded under first-car scheme
About Bt30 billion was refunded to 500,000 people who bought cars under the government's first-car scheme, while the fourth quarter of this year is expected to see Thailand's car production hit 600,000 units with the prospect of production during the year
Somchai Poolsavadi, director-general of the department, said that the rebate continued as expected with a total budget of Bt40 billion for fiscal year 2014.
The Comptroller-General’s Department has made total refund of about Bt30 billion to 500,000 buyers under the first-car scheme.
Some first-car buyers have experienced delay in receiving their rebates due to the information-checking process, he conceded.
"Usually, a buyer will receive the rebate one month after a year of ownership. However, buyers in some areas have seen some delays due to the manual inspection process," he said.
Presently, cases are being filed against two buyers who did not meet the conditions of the first-car scheme.
The number of those who have not received their cars yet dropped to 104,000 from 130,000 earlier.
"Some of these pre-orders may have been dropped given the large number of new models and attractive campaigns," Somchai said.
Surapong Paisitpatnapong, spokeman for the Federation of Thai Industries (FTI)’s Automotive Industry Club, said that about 130,000 pre-orders under the first-car policy were with car dealers. The Excise Department and car dealers have asked customers through short message services and direct contact whether or not they would exercise their rights.
"Some customers have not received the cars under the first-car scheme as now car camps are offering campaigns for cars, especially pickups, with more benefits. Recently, dealers said that some models in stock have started to ease with the exception of small-sized cars," Surapong said.
Pre-orders continue to rise, but financing has become more stringent. About 20-30 per cent of total pre-orders failed to pass credit approval.
As discussed with car camps, he said the Thai car market could see a normal situation after ending the first-car policy. Total car sales are estimated at 80,000-120,000 units per month.
In fiscal 2013, the Excise Department’s actual revenue reached Bt430 billion, exceeding its target of Bt410 billion, Somchai said. The revenue target is estimated at Bt463 billion in fiscal 2014.
Based on this year’s estimated 4-per-cent economic growth, the Excise Department’s revenue may reach its target, mainly due to domestic consumption. The main excise items include cars, liquor, beer and tobacco," he said.
The recent increase in tax levied on liquor could boost an annual increase of Bt10 billion to Bt15 billion in tax collection. In the past one to two months, consumption has not yet risen as there was an adjustment period for operators. However, the Excise Department will assess the result later this year, which is the high season for tourism.
