Thailand planning to align excise tax to CO2 emissions

Thailand planning to align excise tax to CO2 emissions

Thailand has plans to align automobile excise tax to vehicle emissions, moving away from the current system of tax based solely on engine capacity. This proposal by the Industry Ministry was agreed in principle by the Thai cabinet last week, and the Finance, Energy and Industry ministries have been given three months to study the issue.

One of the early proposals include a flat rate of 30% on vehicles below 3,000 cc. Of these, vehicles emitting less than 150 g/km would have 5% shaved off the 30%, while those emitting over 200 g/km will incur an extra 5%. Models that fall in between 150 and 200 g/km will be taxed 30%. Cars with engines larger than 3.0 litres will be taxed 50%, as per the current rate.

Understandably, not all are embracing this new idea with open arms. Thailand is a major producer and consumer of pick-up trucks, and they aren’t the most clean vehicles around. At present, trucks and SUVs are taxed lower than passenger cars at 3-20%, depending on type. The auto industry is also seeking for an adequate grace period.

“We agree in principle that the tax system should be revamped, but we want to achieve this goal smoothly since the restructuring will affect not only automobile manufacturers, but also parts suppliers. Our stance is to ask for time to adjust ourselves,” said Payungsak Chartsutipol, chairman of the Federation of Thai Industries.

“I really hope to see the government thinking about this aspect cautiously and transparently. The developed countries that designed tax rates based on emission spent many years to find the best solution,” he warned.

What do you think of this move? Is this a good example for Malaysia to follow?

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Khairul on May 09, 2011 at 5:46 pm

    If Malaysian cars were cheap like Thailand, this might be a good idea…

    Like or Dislike: Thumb up 0 Thumb down 0
    • Thai Car Fan on May 09, 2011 at 6:01 pm

      It a one idea to get European and some imported Asian car get cheap
      Think If BMW 5 Series are get only 1.499 Million BHT (Approx. USD50,000)

      Like or Dislike: Thumb up 0 Thumb down 0
      • but BMW 5 series lowest price in thai is B3.8million(~USD126k)—- import tax 80%, excise tax 35% VAT 7%

        Like or Dislike: Thumb up 0 Thumb down 0
    • rosdi on May 09, 2011 at 6:30 pm

      Car price in Thailand is cheap?

      Like or Dislike: Thumb up 0 Thumb down 0
      • littlefire on May 10, 2011 at 8:22 am

        Bro, have u been in Tom Yam land be4? Or u are those which some ppl call “Katak di bawah tempurung”

        Like or Dislike: Thumb up 0 Thumb down 0
        • rosdi on May 10, 2011 at 1:42 pm

          The price list given by KZM proved you are wrong. Plus, have you factored their gas price as well? If you want to be taken seriously, please refrain calling people names.

          Like or Dislike: Thumb up 0 Thumb down 0
          • littlefire on May 10, 2011 at 5:50 pm

            Bro, they are net importers for fuel.. If want to compare gas price + car price.. How about we compare it to Indonesia or even Brunei? We will start a war regarding car price + fuel price comparison.. Besides that they are using EURO3/4 at least fuel standart compare to us…

            If not mistaken last time when i am in Thai, i met a few guys which mention that those Diesel pick-up trucks & enviromental friendly cars do enjoy tax rebate…(Paul article already proven) I am not sure whether they discounted after they bought the cars or not.. But i do know those imported cars (i do agree wif KZM) that they are also tax high, as Alphad is imported & quite expensive in Thailand..

            Still, most Tom Yam ppl when compare to ours car will still claim cheaper, as they also prefer more Japs compare to conti car due to more fuel saving (Diesel power pick-up!), spare part availabilities & most important cost..

            Like or Dislike: Thumb up 0 Thumb down 0
          • well for sure thai will implement E4 next yr..currently they use E3….
            thai like pick-up truck because pick-up receive special tax structure favor commercial vehicle..value add by diesel engine efficiency plus now environ fren tax rebate

            brunei anything is cheaper or cheap
            indonesia VW Scirocco – IDR590million(~RM206k) conti far cheaper than us here
            the cheapest honda city i can find cost IDR261million(~RM90k)
            the cheapest civic – IDR339million(~RM118k)

            p/s vietnam produce more crude oil per barrel than brunei

            Like or Dislike: Thumb up 0 Thumb down 0
          • singapore good example net importer….but they r 18th largest oil exporter..we r 30th, indonesia 37th, thai 45th viet 54th brunei 59th(2007 est)

            Like or Dislike: Thumb up 0 Thumb down 0
    • i think u mistaken….european car in thai mostly cost higher than malaysia….and jap or korean car price diff is not that huge ~RM15-20k

      Like or Dislike: Thumb up 0 Thumb down 0
    • eg: VW Scirocco..
      thai (high spec)- B2.68million(RM265,672.00) — import tax 80%, excise tax 30% VAT 7%
      mas (similar thai spec)- RM243,888.00 — import tax 30%, excise tax 90% sales tax 10%(4% recommended GST not implement yet)

      http://www.thaicar.com/demo/new_car/detail_all.php?sType=4&band_id=band_id&p1=&p2=&h1=&h2=&type=1
      http://my.volkswagen.com/vwcms/master_public/virtualmaster/my/models2/scirocco0/price_and_tech_specs/technical_data.detail.0.1.html

      Like or Dislike: Thumb up 0 Thumb down 0
      • littlefire on May 10, 2011 at 12:27 pm

        Still overrall add all the new cars in Thai and take average price, do Thai more expensive compare to us?

        Besides that, those which have green engine or low emission do enjoy tax rebate in Thailand…

        Like or Dislike: Thumb up 0 Thumb down 0
        • yes they r…if u take only jap car brand average with same spec or equivalent..yes it cheaper around RM10-25k coz most built in thai hence avoid 80% import tax..other car price is comparable with us either bit cheaper or bit higher….but for sure most conti here in malaysia cheaper than thai(but still pricey for us)(cheaper dont mean cheap but cheaper) ..hint: car that naza export to thai is more than RM100k, in malaysia less than RM100k

          p/s: dont u guy think that bolehland car cheaper than thai..even they avoid 80% import tax still jap car sold in thai only manage RM10-25k, and bolehland even with very high excise only RM10-25k higher than thai..

          Like or Dislike: Thumb up 0 Thumb down 0
  • paparadzi on May 09, 2011 at 6:06 pm

    This is a partially good idea; taxes should be imposed based on fuel consumption as well. And any reference to engine capacity should be removed as this is very unfair with the current automotive technology.

    Like or Dislike: Thumb up 0 Thumb down 0
    • jtiongwl78 on May 09, 2011 at 7:22 pm

      This one is actually done based on fuel consumption. If you did study chemistry, it works based on equivalent equation.

      Like or Dislike: Thumb up 0 Thumb down 0
  • simasen on May 09, 2011 at 6:07 pm

    IMHO we should adopt it but not only for the excise tax but the road tax as well should be aligned to the displacement of the car..

    study have to be done a.s.a.p n implemented in 5 year period..

    Like or Dislike: Thumb up 0 Thumb down 0
  • Very good move for Thailand. All modern/industrialized nations have stopped imposing tax based on just engine displacement a long time ago.

    We should also tax based on fuel efficiency and safety ratings.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Finerounddclock on May 09, 2011 at 6:48 pm

    Let’s go for this

    Like or Dislike: Thumb up 0 Thumb down 0
  • Kambing Gurun on May 09, 2011 at 6:51 pm

    Should be based solely on emission, regardless of displacement.

    Like or Dislike: Thumb up 0 Thumb down 0
  • if malaysia to implement… how aaa?
    – how gov to determine whats is your car co2 emissions?.. based on data produced by car manufacturer?
    – is it will be one time off, or we need to send our car to puspakom to check on co2 emissions every time want to renew tax?
    – if my weight is only 50kg and i always drive viva 1000cc alone… will my tax different with my uncle who also drive viva 1000cc but his weight is 120kg, and always drive with his 120kg wife and 2 80kg sons?

    Like or Dislike: Thumb up 0 Thumb down 0
    • there are system simulated of average cycle of usage highway, city or combined (urban, extra urban, combined) la moron! and tax schemes in places in Europe does follow yearly increment, partly to entice buyer with low initial tax, to trick buyer into buying new cars after certain period to generate industry and compensate the decrease in efficiency of engine over the years. I’m really so surprise there’s still people with brain to post forum in internet doing so with little brain use…

      Like or Dislike: Thumb up 0 Thumb down 0
      • moron?? too much bro..watch ur language.
        this is malaysia..do it malaysian way!

        Like or Dislike: Thumb up 0 Thumb down 0
  • mazda fan on May 09, 2011 at 7:00 pm

    this should be implemented in Malaysia,will encourage people to buy lower emmision cars,leading to higher demand for hybrids,EV’s and low emission vehicles.plus its good for the environment as well.maybe the gov will consider bringing in better diesel grade and diesel powered cars which is more powerful,fuel efficient and lesser emission compared to petrol

    Like or Dislike: Thumb up 0 Thumb down 0
    • jtiongwl78 on May 09, 2011 at 10:53 pm

      I agree with you. By doing so, government should implement Euro 4 at least compare to current Euro 2 for diesel. It will be very economical to operate those European vehicle especially diesel unit.

      Petrol version will be very economical too. But I dont think G will agree to do so as it will kill the two car producer – stupid and mouse, as their technology are outdated, their engine do emit a lot as their burning efficiency are low..

      Like or Dislike: Thumb up 0 Thumb down 0
      • i think that work in progress they have announce it couple month back rite….at least 3-4 yrs before it will be implement

        Like or Dislike: Thumb up 0 Thumb down 0
    • mazda fan on May 10, 2011 at 8:24 am

      is it possible for us to sign some kind of online petition through paul tan to propose the G to consider such a measure?i know it sounds stupid but someone needs to give the government a hard wake up call.n cut the god damn import tariffs!!!!!

      Like or Dislike: Thumb up 0 Thumb down 0
  • Wilfred on May 09, 2011 at 7:12 pm

    This is practically impossible….
    The excise duty policy is depends on the priority of the government.
    Thai government is looking at curbing pollution, hence comes with such a new tax structure to rewards the less-polluting one and penalize the most polluting one.

    Our government does not seems to be favor much in that direction, as national automotive is still the highest among all, unless the course is changed from protecting local automotive, otherwise we won’t have similar tax structure

    Like or Dislike: Thumb up 0 Thumb down 0
    • jtiongwl78 on May 09, 2011 at 11:00 pm

      They dont care what is good for the community! NAP priority is to protect the two low class and slavery series member – Stupid and Mouse – Proton and Perodua .

      They need to be forced in order for them to implement such policy.

      Like or Dislike: Thumb up 0 Thumb down 0
  • jtiongwl78 on May 09, 2011 at 7:20 pm

    I personally think that this will be a very good move. Msia should implement it without further delay. But with the condition that all other taxes on motor vehicle shall be null and void.

    If like that, stupid and mouse ( proton and perodua ) will die as their fuel efficiency are poor. Therefore a lot of unburn residue are emitted, which will increase the tax on them..

    Very very good and make sure they will go to hell faster.

    Like or Dislike: Thumb up 0 Thumb down 0
    • lonelyobserve on May 09, 2011 at 10:52 pm

      This will slap those pesky guys from waking up that their vehicles are seriously not very environmental friendly.

      Like or Dislike: Thumb up 0 Thumb down 0
    • autojohndoe on May 10, 2011 at 10:29 am

      how you define poor?

      Like or Dislike: Thumb up 0 Thumb down 0
      • jtiongwl78 on May 10, 2011 at 11:55 pm

        Big baby is still big baby? Why don’t you ask G, if that two national producer,stupid and mouse are prepared to face the challenge in an open market, why dont they just support it? Rather than urging G to extend their protection period..

        Like or Dislike: Thumb up 0 Thumb down 0
  • If Malaysia don’t have Malaysian branded cars…. it is possible… but for another 50 years… it won’t happen….

    Like or Dislike: Thumb up 0 Thumb down 0
  • t-man on May 09, 2011 at 7:47 pm

    Hi,

    None of this applies in Malaysia where we operate on a different system altogether.
    We may consider this when the mechanism for importing/exporting CO emissions which incorporates an AP system has been invented.

    Like or Dislike: Thumb up 0 Thumb down 0
  • jalan54 on May 09, 2011 at 7:50 pm

    It is not important whether Malaysia should follow or not follow, instead Malaysia should reduce the tax for imported or CBU vehicles before talking about this.

    Like or Dislike: Thumb up 0 Thumb down 0
  • good call by the Thais. the notorious gas guzzler like proton will be feeling the heat soon.

    Like or Dislike: Thumb up 0 Thumb down 0
    • squawk on May 09, 2011 at 8:47 pm

      Does Proton have official emission figures for their cars?

      Like or Dislike: Thumb up 0 Thumb down 0
      • It’s around 157g/km-177g/km

        Source: http://www.westroadgarage.com/Neo_9995_PORT.pdf

        Like or Dislike: Thumb up 0 Thumb down 0
  • smokey on May 09, 2011 at 8:23 pm

    i support…but if that system is implemented, will proton cars have higher tax? coz campro engine is still not that efficient/clean right?

    Like or Dislike: Thumb up 0 Thumb down 0
  • apamau on May 09, 2011 at 8:53 pm

    I think malaysia still can follow, as long as we know how to transfer the current AP methodology into this CO2 emission scheme.

    As long as it is Proton & Perodua car, the tax will always be lower even though their CO2 emission could be highest, as it will be given 20 years headstart for them to achieve what foreign car can do.

    Like or Dislike: Thumb up 0 Thumb down 0
    • there is not many open AP car around….most car in our road commercial AP that is free if not mistaken…..should be displacement vs emission not AP vs emission

      Like or Dislike: Thumb up 0 Thumb down 0
  • Gavin on May 09, 2011 at 9:00 pm

    Will not work EVER in malaysia because we have no diesel cars (read : proton).

    Diesels emit the least amount of C02 next to hybrids, that’s why europe has soo many diesels because their tax structure is exactly like thailand where the more CO2 the higher the tax.

    If they implement this it means we will really die because currently i think our engines emit massive massive amounts of CO2.

    And those who think petrol engine are exculded THINK AGAIN, petrol engines are also being pushed to emit extremely low CO2 with turbocharging, lean burning, direct injection etc which needs higher grade euro standard.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Carl Wong on May 09, 2011 at 9:04 pm

    Due to global warming, it is really getting hot here. We have to do something NOW or get burnt outdoors……. to lower those emissions.

    Like or Dislike: Thumb up 0 Thumb down 0
  • lonelyobserve on May 09, 2011 at 9:15 pm

    Such taxation based CO2 emission allows us to understand how much the vehicles emit exhaust gas from the engine. To excise such taxation, there is an independent group or board that specialise on determine the CO2 emission from the vehicles, just like in UK and Australia.

    Like or Dislike: Thumb up 0 Thumb down 0
  • ferox on May 09, 2011 at 9:17 pm

    I would like to see car taxes based on emissions and insurance based on safety rating. As for reducing / abolishing the import tax, I don’t know about that – aren’t there already too many cars on the roads leading to ever increasing traffic congestions? I propose:

    1. Level the tax playing field for imports & local made brands.
    2. Government must channel tax funds responsibly (i.e. no corruption) to building a viable public transport system.
    3. Improve vehicle driving skills / license system. (Maybe look at those BMW or similar driving courses and implement something similar)
    4. Better enforcement over both minor & serious traffic offenders.

    “Driving is a privilege not a right”

    Like or Dislike: Thumb up 0 Thumb down 0
    • sepul on May 09, 2011 at 9:31 pm

      your idea is very agreeable.. i think is the best approach for malaysia at the moment

      Like or Dislike: Thumb up 0 Thumb down 0
    • jtiongwl78 on May 11, 2011 at 12:00 am

      Strongly agree with your idea. Hopefully G will listen it in an open minded manner.

      Like or Dislike: Thumb up 0 Thumb down 0
  • if this is implemented in Malaysia, RX-8 owner would cry foul and loud… LOL

    Like or Dislike: Thumb up 0 Thumb down 0
  • ch1et on May 09, 2011 at 9:36 pm

    Good move and far-sightedness by the Thais.

    Like or Dislike: Thumb up 0 Thumb down 0
  • bluestreak on May 09, 2011 at 9:51 pm

    great.. there will be no chance to tax electrical car in the future…
    P/s: I always thinking, the safer the car or the better that car equipped with safety system, the lesser tax should be imposed..
    I meant, motor vehicle accident is number one of death in Malaysia, why impose tax on safety?

    Like or Dislike: Thumb up 0 Thumb down 0
  • bobdbilder on May 09, 2011 at 10:12 pm

    Yeah great. Tax the Asian cars so that they can sell more European diesel cars. Never mind that they have the CKDs from their factories to a ship by diesel trucks. Who cares if they use nuclear energy to power some of those plants right? Never mind if they ship all those components in thousands of kilometers by sea on ships that run on fueloil. Never mind that from ship to the shops they use trucks. Who cares right?

    Yes sacrifice our own local workforce for the benefit of the Greeks who talk all day and don’t do any work. Germans can’t feed them on their own, we need to help them. Yeah and get kicked in the a$$ by a fat guy who wears a green jacket and the tricolor on his arm when you do travel to Porzheim.

    Yeah we only want to be like the Brits who don’t make anything anymore but drive diesels. Well except for fancy vacuum cleaners. Ooops sorry, they make them here. Yeah why don’t we just enjoy life from the fruits of our banking industry. Yeah why not! Except we have this thing about erasing poverty. That is a problem.

    Like or Dislike: Thumb up 0 Thumb down 0
  • BeemerFreak on May 09, 2011 at 10:36 pm

    This must be implemented…… That is the only way forward for malaysia.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Mohamad on May 09, 2011 at 11:13 pm

    what? are you all out of your mind? if this tax is implemented. knowing how our beloved gomen do things around here, this tax will be added on top of all the other various tax already in place. and proton cars which have ancient engine technology will be taxed heavily. thus making the rakyak cant afford a car anymore… but wait a minute.. that’s good. less car–>no traffic jam.

    Like or Dislike: Thumb up 0 Thumb down 0
  • it’s a good move for long term. Malaysia should copy this policy. in the long run, a cleaner Malaysia and a better car for the people. Proton really have to step up in following this but less C02 emission means a better engine combustion cars. Less petrol used in moving the car. It also has to be aligned with good grade of fuel. Euro 5 atleast?

    Like or Dislike: Thumb up 0 Thumb down 0
  • tokmoh on May 10, 2011 at 2:35 am

    My very unpopular response is no. Tax based on engine capacity I believe is more fair

    Have you ever seen car makers price their bigger cc models cheaper than smaller cc models? There’s only few exceptional cases eg altis 2.0 cheaper than 1.8 prius (despite getting tax exempt as it has lower emission, good fc, hybrid tech etc).

    For the rest of the time, car price increase with engine cc. Camry 2.4 more expensive than camry 2.0, viva 1.0 more expensive than viva 660 etc

    This can generally indicate ppl who buy cars with bigger cc have higher disposable income therefore they can afford to pay higher tax. Isn’t that like how income tax is based: you have higher income, you pay more tax? The more expensive the car price (engine cc being a factor), the more you should pay tax?

    Tax based on emission breaks this rule. If ever, it favours people with higher income who can afford such premium cars with low emission. These people gets tax break, rich getting richer. Poorer people gets penalised for not being able to afford these cars. Poor getting poorer.

    Like or Dislike: Thumb up 0 Thumb down 0
  • azrai on May 10, 2011 at 7:39 am

    That’s why Tomyam land already known as Detroit of Asia. Wondering what NAP really going for. We still using cc as road tax indicator. Furthermore, electric vehicle cannot be registered because lack of engine number?? 2020 is just 9 years to come. We already lag behind Korea, Taiwan, China. Now we are trying hard to catch Thailand and Indonesia (not forgetting Vietnam too).

    Like or Dislike: Thumb up 0 Thumb down 0
  • charsiewriceboy on May 10, 2011 at 9:21 am

    Shucks no …i removed my catalytic converter to allow my wira to breathe better…but on the flip side ..my car is an ngv…the rebates for NGV cars is not equalivent to hybrid cars…which is also a green car.

    shud this policy comes into place , then car prices must come down more to match thai ‘s prices for car.and trucks

    Like or Dislike: Thumb up 0 Thumb down 0
  • Stephen on May 10, 2011 at 11:44 am

    to do this for Malaysia…good for Gov to give us good fuel…euro 4 or sync with Europe latest spec….but opsss it might give a reason to increase fuel price.

    Like or Dislike: Thumb up 0 Thumb down 0
  • There’s another tax must be included equally – Fuel Efficiency Tax or the mileage of per litre fuel used (Eg. Litre/100km rate).

    Both CO2 Emission Tax and Fuel Efficiency Tax share 15 percent each with those cars above respective limits will incur even higher tax rate than the 30 percent combined. Likewise cars with cleaner emissions and much lower fuel consumption must be rewarded perhaps to near zero car tax at all. If hybrid cars getting such reward why not for clean, fuel-efficient non-hybrid cars?

    Rather than a flat ambigous rate on engine capacity to determine the car duties taxes, these form of dynamic and progressive car tax system can only promote clean and efficient engines. Best of all, car buyers finally in better view to choose which car actually represent best value for money and not because of some silly patriotism absurdity craps.

    Therefore:
    CO2 emission Tax + Fuel Efficiency Tax + Sales Tax 10 Percent = Selling Price

    Anyway as usual, it’s irrelevant for the ancient yet expensive Proton’s Campro engine so it’s fat hope lah for NAP to implement it.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Hell, its about time.
    Our ancient tax system based on capacity is a joke.
    Time to take the training wheels off proton and perodua, and see how they fare against the real automotive industry, not within the protective shell of our policies.
    Time to prove they’re not garbage.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Madera Roja de la Secoya on May 10, 2011 at 8:40 pm

    I absolutely support a tax on emissions.
    That the industry needs time to change is merely the same whining that producers always do and should not be supported.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Madera Roja de la Secoya on May 10, 2011 at 8:43 pm

    I absolutey support a tax based on emissions!

    Like or Dislike: Thumb up 0 Thumb down 0
  • Agree with this move on by Thai to prevent global warming
    Malaysia should follow this step to save mother nature
    As for proton and Perodua issue, I think it is good n a challenge to them to improve their engine base on the co2 emmission, improve their car to compete with the other brand car in the market.
    Currently due to G still protect them, they still not reallly improve,

    Their low spec, eg m-line quality is totally worse than h-line. Their QA system should improve

    Like or Dislike: Thumb up 0 Thumb down 0
    • keenlui79 on May 11, 2011 at 11:44 pm

      Agreed. Understanding modern cars now also designed based on emission of CO2, this should be a good move to reduce global warming. Malaysia should follow and revise the road tax basis according to CO2 emmision.

      Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required