New emissions tax won't hurt car sales much: minister
Play
INDUSTRY Minister Chakramon Phasukavanich has said the restructuring of automobile excise tax to include an emissions levy that will become effective from January 1 next year should not have a significant impact on people's decisions to buy a new car.
Consumers should not worry too much since the new tax rates will apply only to new models, he said yesterday.
Chakramon said it would not be fair for the new tax rates to applied to old car models and consumers would benefit, since automakers would compete more to deliver quality and would give consumers more choices.
Some vehicles may cost more
Consumers who choose energy-saving cars will be charged less tax, he said.
Piengjai Kaewsuwan, president of the Thai Automobile Industry Association and chairwoman of the Asean Automotive Federation, said the new tax might make some types of vehicles slightly more expensive, such as pickup trucks and commercial vehicles.
If the tax rate is raised by 5-10 per cent, the retail price might be raised by 2 per cent, she said.
Nevertheless, she insisted the new excise structure would not affect the overall car industry.
Carmakers have adjusted to the government’s new policy and the public should benefit, since automakers will produce better-quality vehicles that emit less carbon dioxide, she said.
This is in line with the world trend, which has tilted towards energy-efficient vehicles that are more friendly to environment, she said.
Piengjai said the Thai automotive industry should resume its growth this year, thanks to the improvement of the overall economy. The government expects gross domestic product to grow by 3-4 per cent this year.
The annual Bangkok Inter-national Motor Show, which kicks off late this month, will confirm if the economy is really recovering, she said.
