Ministry to seek Cabinet approval for first-time car buyer policy
The Finance Ministry will next week seek Cabinet approval for its populist policy of allowing first-time car buyers purchasing a vehicle worth no more than Bt1 million to be allowed tax refunds of about Bt100,000.
The excise-tax refund will paid over three years and the car buyers will be required to use their vehicle for at least five years, Deputy Finance Minister Boonsong Teriyaphirom said.
He added that the Excise Department would be responsible for paying the tax refunds, which will be calculated according to the factory price. The department has yet to decide whether the refunds will be paid in the form of a cheque or a voucher.
"The Excise Department has agreed to be in charge of returning excise tax to first-time car buyers provided that they use the car for at least five years. This package will be available for any vehicle that is worth no more than Bt1 million. This package is more extensive than the previous one, which only covered pickup trucks and eco-vehicles," Boonsong said.
"The car buyers will have to pay the tax in advance, and after that the Excise Department will gradually return the amount over three years," he added.
Boonsong said the ministry would initially offer this tax-refund measure for first-time car buyers before extending it to people purchasing their first home worth no more than Bt5 million, who will be offered a personal-income-tax deduction of up to Bt300,000.
