• 
• 

The Board of Investment (BoI) yesterday expressed support for the Excise Department's refusal to grant deeper excise tax cuts on E85-compatible cars.

"The present rates are appropriate in our opinion. If the department approves lower excise tax rate for E85 cars, eco-car makers may hesitate about making huge investments," said deputy secretary-general Sudjit Inthaiwong.

The total value of eco-car investment is too high to risk with the small investment for E85 cars, she said. Presently, the excise tax rate on E85-compatible cars is 25 per cent, the same level as E20-compatible cars. Eco-cars are taxed at 17 per cent.

In the seminar, "Eco-Car: The Future of the Thai Auto-Parts Manufacturing Industry", Surapong Paisitpatnapong, spokesman for the Federation of Thai Industries' Automotive Industry Club, said the country's light-vehicle production would shift from pickups to passenger cars, in line with global demand. Passenger cars now account for about 23 per cent of total output. However, after eco-car plants are operating at full capacity in seven years, passenger cars will make up half of production.

"The government has chosen the right direction to promote the country as a regional hub for eco-cars, so it should not revise any policy that can affect eco-car investment," he said.

The policy to introduce E85 cars in three years is appropriate.

Thai Summit executive vice president Thanathorn Juangroongruangkit, the largest local auto-parts maker, said it spent some Bt3 billion this year on upgrading its plant to support eco-car projects. "Local parts-makers must strengthen their competitive advantage to survive the tough competition." -