Tax rates of 10 to 30 per cent on imports would be eliminated completely. Somchai said the tariff cut was aimed at helping local manufacturers that assemble buses and other types of commercial cars for the local market.

It is also aimed at supporting the Bangkok Mass Transit Authority, which operates the city's public bus service.

Local manufacturers earlier requested such a tariff cut, and the government has promoted using NGV to save on fuel costs, because of recent high prices for crude oil. The government has also offered excise tax breaks for both passenger and commercial cars modified for NGV.

Somchai said the tariff cut would be temporary, because the government wanted local auto-parts manufactures to produce auto parts and engines that were compatible with NGV.

However, he did not confirm a report that Deputy Prime Minister and Finance Minister MR Pridiyathorn Devakula would propose the package to the Cabinet today. Reuters reported yesterday that the tax-break package would be submitted for Cabinet approval at today's meeting.

The report said the 30-per-cent tax on chassis with engines powered by NGV for commercial cars would be eliminated. Tax on NGV tanks and accessories would be cut to zero from 20 per cent for commercial cars and to zero from 30 per cent for passenger cars. These cuts would in effect to the end of next year.

Somchai said the tariff cuts would not affect Customs Department revenues very much.

Wichit Chaitrong

The Nation