BANGKOK, 13 September 2011 – The tax reduction measure for first-car buyers has been approved by the Cabinet and is set to commence on 1 October while the budget required for the tax rebate is expected at 30 billion THB.
After the weekly Cabinet meeting, Industry Minister MD Wannarat Channukul revealed that the Cabinet had given the green light to the reduction of automobile tax for people buying a car for the first time. The measure is slated to be imposed on 1 October and is expected to help boost car sales next year by 500,000 units. Based on the initial calculation, a budget of 30 billion THB is needed for the tax refund process.
Those eligible for the tax cut must purchase their first car between 1 October this year and 30 December next year while the vehicle must be a passenger car or a pick-up truck with a value of no more than 1 million THB and an engine no larger than 1,500 cc.
After the purchase, the buyer will be obligated to remain the owner for at least five years. The tax rebate process will begin after the first year of purchase at the rate of not exceeding 100,000 THB per vehicle.
