FRIDAY, March 29, 2024
nationthailand

First-time car buyers' tax refund considered

First-time car buyers' tax refund considered

The Cabinet will tomorrow consider the Finance Ministry's proposal to spend Bt30.1 billion to refund taxes on first-time car buyers, who will be required to hold the vehicle for at least five years.

A well-informed Government House source said the ministry will ask the Cabinet to approve Bt100 million from the 2012 fiscal year budget and Bt30 billion from the 2013 fiscal year budget for tax refunds for first-time vehicle buyers.

According to the source, the cars must be purchased during October 1 2011 to December 2012 to be eligible for tax refunds. The buyers will be refunded the actual amount of tax they have paid but the ceiling of the refund is Bt100,000.

Each car or pick-up truck must not be worth more than Bt1 million and its engine capacity must not be more than 1,500 CC to be eligible for the refunds.

The vehicles must be built in the country with new parts. Those built with imported used parts will not be eligible for the refunds.

The source said the car buyers must be at least 21 years old.

The refunds will be made one year after the purchase or from October 1 2013.

The car buyers will have to submit a tax refund form at an office of the Excise Department in their area. They must provide a letter of consent to forfeit the right to sell the cars within five years. If the cars are mortgaged, copies of ID cards and household registration and leasing contracts, must be submitted along with a form to the excise office.

The excise office will in turn inform the Land Transport Department or its offices to verify each buyer is a first-timer at the time of purchase.

The Land Transport Department will be required to record on its online database and the car's registration book that the car cannot be resold within five years.

After verification and registration, the Land Transport Department will inform the excise office, which will issue a cheque for the buyers, starting from October 1, 2012.

The Finance Ministry will inform the Cabinet that the project is an urgent one which would increase the quality of life for the public and stimulate the domestic economy by increasing purchasing power of the community.

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