New CO2-based car taxation scheme to net Thai government up to RM1.2 bil in additional tax revenue

thailand traffic

Thailand’s new vehicle excise tax, which is based on C02 emissions, is expected to increase tax revenue for the government by as much as 10 billion baht (RM1.2 billion) next year, the Bangkok Post reports. The new tax scheme is set to begin on January 1.

From 2016, vehicles sold in Thailand will be subject to an excise tax based on CO2 emissions, E85-gasohol compatibility and fuel efficiency rather than engine size, the report said.

The excise tax for passenger cars with CO2 emissions 150 grammes per km or below will be 30%, but higher emissions will require a higher tax, though the Thai Excise Department’s director-general Somchai Pusawas said that under the new structure, some models could be taxed less than the current excise tax based on engine size if they are able to reduce emissions.

The publication said the segment that will be most affected is the one-tonne pick-up truck category. According to the report, if a vehicle in this class doesn’t exceed 200 gm of CO2 per km, it will be taxed at the current rate of 3%.

thai tax structure

However, it’s said that no model in the segment will be able to have emissions lower than 200 gm per km, and so they will be charged a 5% excise tax rate. This will amount to around 20,000 to 30,000 baht (RM2,360 to RM3,530) being imposed on each pick-up.

Meanwhile, eco-cars will be required to have less than 100 gm per km of C02 emissions, which will lower their tax rate to 12-14% from the 17% currently. As for hybrids, the 10% excise rate will be unchanged.

Buyers will be able to tell exactly how much C02 emissions a vehicle has. As of October 1, the Kingdom requires all manufacturers and importers of passenger vehicles to display an eco-sticker on windscreens of all new cars so that buyers are aware of the CO2 rating, emissions, safety and fuel economy figures.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Aero (Member) on Dec 03, 2015 at 2:50 pm

    No no no paultan.org, don’t post this kind of news ! Don’t give BN any ideas to suck even more of the rakyat’s money ! :(

    Haha jk jk Well, I must say, the Thai government actually knows what’s up. I don’t think any other ASEAN country has implemented a Co2-based taxation system yet. In Europe, America and Japan, it’s been many years already.

    The good news is, the new Co2 tax will force Thailand’s car companies to use newer engines. No more dinosaur Euro II Vios engine from 2002. And good news for mother nature, healthcare and tourism too. The bad news is… more taxes to pay I guess… Also, classic car owners in Thailand will feel the pinch.

    Like or Dislike: Thumb up 31 Thumb down 2
    • T-Rex on Dec 03, 2015 at 3:29 pm

      The CO2 tax is based on a nonsense theory that the humans are killing the earth by emitting too much CO2 when the major cause of CO2 emission is the sun itself, indirectly.

      The main reason for developed nation to push this nonsense? It is to stop developing nations and other 3rd world countries from getting rich by using proven old technology and their cheap labor.

      With CO2 taxes being introduced, the developing nation is forced to license new technology from the developed nation and remain poor forever. This is smart colonization.

      Like or Dislike: Thumb up 18 Thumb down 19
      • Leafable on Dec 03, 2015 at 4:10 pm

        I’m afraid you are the most uneducated twat here.

        Like or Dislike: Thumb up 20 Thumb down 8
        • T-Rex on Dec 03, 2015 at 5:13 pm

          I am sad your brain have been sucked out thru your back by lobbyist. Remain dumb as long as you wish.

          Like or Dislike: Thumb up 9 Thumb down 10
          • His overlords is Amerika, so he no choice, cannot persoal. Cuz they are world leader in upholding & promoting democrazy

            Like or Dislike: Thumb up 3 Thumb down 7
      • Gargantia on Dec 03, 2015 at 4:12 pm

        Guess no different if Thailand made vehicles getting more expensive… While BN cronies will find excuses and blame Thailand “car price getting expensive” and the cbu will charge extra expensive in Malaysia. No much difference… BN will keep fooling new customers, Rakyat time to change !!!

        Like or Dislike: Thumb up 9 Thumb down 2
        • Change? To PR? Forgetaboutit! They are more concerned to consolidate their fiefdom and chumming with invaders than to help you.

          Like or Dislike: Thumb up 8 Thumb down 10
          • Gargantia on Dec 03, 2015 at 9:57 pm

            Really then stick with you beloved BN cronies and pay debts until u died…

            Like or Dislike: Thumb up 7 Thumb down 0
      • New idea for jibby to squeeze money from us.

        Like or Dislike: Thumb up 7 Thumb down 0
      • paparadzi (Member) on Dec 04, 2015 at 12:08 am

        I like your thinking, suits your nickname very well.

        Like or Dislike: Thumb up 1 Thumb down 0
      • Legoland on Dec 04, 2015 at 7:49 am

        You were slightly convincing until you said the sun was the main contributor of c02 emmissions. Try harder.

        Like or Dislike: Thumb up 1 Thumb down 0
      • BeemerFreak on Dec 04, 2015 at 7:49 am

        What you are speaking of is not a solution to pollution….if you are as knowledgeable as you say you are, provide something that is technically correct and not just politically correct……that fact that Thailand, a nation many perceive to be economically behind Malaysia, has taken the first bold step to introduce such taxes despite the fact that most of the cars produced there do not meet the criteria.
        The fact that malaysia can never follow suit is because we are constantly protecting our industries from outside factors rather than stimulating in with competition and goals. Give a solution not more problems. Nothing personal here but bash if you like……

        Like or Dislike: Thumb up 3 Thumb down 0
    • Ini mesti semua salah Najib. kan? kan? kan?

      Like or Dislike: Thumb up 2 Thumb down 1
  • kapchai on Dec 03, 2015 at 3:01 pm

    Thailand also adopt policy to tax the rakyat

    Like or Dislike: Thumb up 4 Thumb down 0
  • Consumer on Dec 03, 2015 at 3:22 pm

    Personally i like this emission based taxing system, especially road tax. Instead of conventional engine capacity based system. If would be more perfect to put emission rate/vehicle size/vehicle weight into the taxing formula.

    Like or Dislike: Thumb up 12 Thumb down 0
    • Kapcai with smokes will need to pay more tax compare to newer mercedes? New system to reduce rempit? But pity those can’t afford for new vehicle.

      Like or Dislike: Thumb up 10 Thumb down 0
      • Consumer on Dec 03, 2015 at 8:27 pm

        Thats is the reason here the formula to derive not solely emission but also vehicle size &weight. There is no longer New 2-stroker allow to introduce in Malaysia due to high emission rate and usually 4-stroker come in much cheaper than those heavy smoke 2-stroker. Dont get me wrong, the above idea is not to stress rakyat, but the manufacturer to come out with more environmental friendly products along with better quality fuel in future.

        Like or Dislike: Thumb up 5 Thumb down 0
  • mystvearn on Dec 03, 2015 at 4:45 pm

    CO2 based tax will never come to Malaysia, unless gomen wants to Kill Proton and champion foreign cars.

    Like or Dislike: Thumb up 10 Thumb down 0
    • Megavalve on Dec 03, 2015 at 5:15 pm

      Proton Campro engine will never survive this car tax system, probably will cause Proton cars much higher.

      MITI should implement it here as soon as possible.

      Like or Dislike: Thumb up 7 Thumb down 0
    • Wait a minute. Isnt that what Tun M just said about Najib? So unless P1 gets Iriz EV of the ground, Najib dun gip a F about P1 survival but trying to liberalise the market.

      Like or Dislike: Thumb up 5 Thumb down 0
    • tokmoh. on Dec 03, 2015 at 6:05 pm

      Now use cc based also people bising.

      Polo 1.2 tsi last time pay less road tax than most proton owners.

      Mazda RX-8 pay myvi road tax.

      Volvo S60/V60/V40 T4, or even BMW 316i, car costs rm170k the least, pay same road tax as proton waja owners.

      Too many maslans, complain wanna be green, use co2 road tax system. Volvo, VW, BMW, merc all go green by downsizing, then meroyan why rich people pay less than proton owner *flip table*

      Win liao lor.

      Like or Dislike: Thumb up 12 Thumb down 0
  • Painter on Dec 03, 2015 at 4:59 pm

    Basically, cost rises all over the world lah.

    Whoever holds the government will need to find ways to raise money to spend.

    Like or Dislike: Thumb up 5 Thumb down 0
    • But RBAs will still say ini semua salah Najib. They veli sure kau-kau if dear leader takeover, immediately overnight petrol becum RM1.00/L, RM1 = SGD1, we shoot up to bestest 1st world country, woh.

      Like or Dislike: Thumb up 4 Thumb down 6
  • paparadzi (Member) on Dec 04, 2015 at 12:16 am

    An emission-based tax system is definitely better than the current engine-capacity-based tax as practised here.

    The BMW 5 series costs more than double the price of a Camry Hybrid, uses more fuel and emits more CO2. Yet The Camry Hybrid pays more than double the road tax of a BMW 5 series. Is that fair?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Battu on Dec 04, 2015 at 9:24 am

    You have to admit, thai have better automotive policy.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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