Excise duty on eco-cars no higher than 15%: Sommai
Deputy Finance Minister Sommai Phasee said yesterday that excise duty on the manufacture of small cars in Thailand would be 15 per cent or lower.
"What the final rate would really be depends on the Cabinet," he said. He also revealed that the Cabinet would be considering the issue next Tuesday. A Finance Ministery source said earlier that while the Industry Ministry wants the duty to be as low as 10 per cent to promote investment, the Finance Ministry fears that too low a rate could jeopardise the entire auto industry. Thailand desperately needs new investment and the eco-car project is expected to draw no less than Bt20 billion in new investment. Mitsuhiro Sonoda, president of Toyota Motor Thailand, last week suggested that the Thai government adopt a comprehensive approach to boost the entire auto industry, and not just small-car manufacturing. Thailand has been the production hub for one-tonne pickup trucks for several auto companies, including Toyota and Isuzu. Former prime minister Anand Panyarachun, whose government envisioned Thailand as the Detroit of Asia, also reckoned that the government should think carefully in lowering the excise rate for the eco-car project, as that could affect the entire industry.
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