The Board of Investment and the industry and finance ministries yesterday concluded that the ex-factory excise tax on eco-cars should be lowered to between the two figures, according to a source.

Finance Minister Chalongphob Sussangkarn said the three agencies agreed that the production of eco-cars needed to be promoted.

But he refused to specify the tax pending consultation with Deputy Prime Minister and Industry Minister Kosit Panpiemras. A Cabinet recommendation is expected within two weeks.

A source said the excise tax should be around 15 per cent to 20 per cent of ex-factory prices. Passenger cars are subject to 30 per cent.

The industry wants to see the 10-per-cent rate but the Finance Ministry thinks that is too low and could affect manufacturing of other vehicles in Thailand, the source said.

Meanwhile, Chalongphob will meet advisers and revenue department officials on Monday over property-tax changes.

He has disagreed with cutting specific business taxes and property-transaction fees.

But annual tax exemptions for home owners are likely to increase from the current Bt50,000. He declined to reveal the new level.

Wichit Chaitrong

The Nation