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.