New carbon tax won't dent car sales
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The Federation of Thai Industries believes the new excise tax based on carbon-dioxide emissions instead of engine capacity will not dent car sales when it is introduced next year if the economy recovers as expected.
“The new car tax means that the prices of new passenger cars, which are being used by the majority, will increase by about Bt10,000 to Bt100,000.
“However, the expected improvement in the economy from the government’s stimulus efforts, the investment in infrastructure mega-projects and the expected rebound in crop prices should be enough to counter the expected inflation in car prices,” said Surapong Paisitpattanapong, vice chairman of the FTI and spokesman of its Automotive Industry Club.
Consumers’ purchasing power should increase, while the tax increase will affect higher-income more than low-income earners.
The effect on the prices of pickup trucks, which are mostly used by low-income earners, will be minimal since their engines are smaller than the most expensive passenger cars.
The prices of eco-cars will not be affected, he added.
