Finance Ministry eyeing automobile tax hike

BANGKOK, 9 August 2009 (NNT) – The Ministry of Finance is pondering on an increase of motor vehicle taxes to promote the use of alternative energy among motorists.

Finance Minister Korn Chatikavanij stated that he had a meeting with the Industry Ministry and the Energy Ministry to discuss a tax restructuring plan in an effort to come up with measures and policies for assisting the automotive industry accordingly to the current energy consumption. Due to skyrocketing fuel prices, the minister explained that the government needed to lay down an implementation plan to encourage more consumers to turn to using alternative energy in the future.

As there were currently hybrid energy as well as NGV, LPG, E85 and other types of petrol in the market, Mr Korn indicated that the government would have to make a decision on which of them should be the main energy sources and perform suitable tax adjustments later on. The minister, however, added that more people had turned to buying alternative energy-consuming and petrol-saving vehicles but the government’s related policies had not yet been clarified.