BANGKOK, Aug 24 – Deputy Finance Minister Thanusak Lek-uthai said the ministry will not yet propose vehicular tax structure changes for Cabinet consideration linked to the quantity of carbon dioxide (CO2) released by newly-produced vehicles.
Such a method of tax adjustment is intended to reduce environmental problems.
Mr Thanusak said that the auto industry has only just recovered from last year’s flood, and is installing new machinery in its production lines, and the government recently launched its ‘First Car’ scheme to boost sales and car ownership in the auto sector.
Changing the vehicular tax structure should not be done now, he said, as it could require the auto industry to change its production lines, which will be a burden for the sector.
In case of a structural change, the Excise Department has studied how to collect motor vehicle excise tax in accordance with the quantity of carbon dioxide released.
A 50 per cent tax collection applies to an engine higher than 3,000cc, while a 30 per cent tax would be applied to vehicles with an engine smaller than 3,000cc.
In that case, the tax collection structure for vehicles with the usage of ethanol, gasohol (a gasoline and ethyl alcohol mix), and electric and eco cars will be annulled.
