Thailand plans to implement trade-in coupon system to stimulate new car sales – RM13k rebate value

Thailand plans to implement trade-in coupon system to stimulate new car sales – RM13k rebate value

At the end of August, Thailand announced that it was looking to stimulate car sales in the country, which had fallen significantly as a result of the Covid-19 pandemic. The plan will see tax incentives being offered to individuals and companies in a bid to get them to exchange their old cars for new vehicles.

The country’s ministry of industry is proposing to launch trade-in coupons worth 100,000 baht (RM13,260) each to car owners, who can also use their expense to reduce tax. Discussions are underway and the project is expected to be forwarded to the country’s cabinet for a final say within two or three months, the Bangkok Post reported.

Industry minister Suriya Jungrungreangkit said that the project involving the trade-in coupon scheme will be open to all types of car models, including EVs, and will run for five years, a timeframe that will help restore the Thai automotive industry. “This is a quick-win project to help car manufacturers and related businesses crushed by the impact of Covid-19,” he said.

According to the nation’s land transport department, the country has about three million cars registered that have been in use for over 15 years, and the eventual aim is also to reduce pollution from these with the switch to newer, more efficient vehicles.

Thailand’s move to offer tax incentives to buyers has a similar intent to our tax relief measures announced as part of the Penjana economic stimulus plan, although the mechanics are different. Our incentives see a 100% sales tax exemption on locally-assembled (CKD) models and 50% on fully-imported (CBU) models being offered until December 31, 2020, which is a much shorter timeframe.

Aside from the duration, do you think that the proposed Thai incentive scheme is more advantageous? Bear in mind that while a blanket RM13k sounds like a lot, cars in Thailand are also more expensive in a direct forex comparison. Share your viewpoints with us in the comments section.

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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

  • Jeremy on Sep 08, 2020 at 6:20 pm

    Our PH govt way smarter to give 0% GST. Bravo!

    Like or Dislike: Thumb up 10 Thumb down 16
    • Mohd Yahya bin Pendek on Sep 09, 2020 at 7:44 am

      This is why Thailand has overtaken Malaysia to be the Detroit of Asia. They are so well planned and disciplined and have amazing creative ideas.

      The past 25 years, we have lost trillions of ringgit of investments by car companies pouring their money into Thailand.

      Bear in mind, in the 90s, we were the CKD capital of the world and we were the Detroit of Asia.

      We lost trillions of ringgit plus hundreds of thousands of jobs for fellow Malaysians

      Like or Dislike: Thumb up 5 Thumb down 5
  • dong gor on Sep 08, 2020 at 7:06 pm

    Zero SST to be extended until end of 2021…conlanfirm.

    Like or Dislike: Thumb up 0 Thumb down 0
    • Avenger on Sep 08, 2020 at 9:52 pm

      This smells like a black market scheme trading coupons in the making. Bravo Thailand, the capital of the underworld business.

      Like or Dislike: Thumb up 12 Thumb down 1
  • azrai on Sep 08, 2020 at 8:40 pm

    Maybe a hire purchase stretch to 15 years? Haha

    Like or Dislike: Thumb up 0 Thumb down 5
  • vivizurianti on Sep 09, 2020 at 7:39 am

    Wonder what are mentioned in the fine prints…

    Like or Dislike: Thumb up 1 Thumb down 0
  • Nah. Prefer 0% interest for first time car buyers for CKD cars with 1.3L NA and below.

    Like or Dislike: Thumb up 0 Thumb down 0
  • potato on Sep 10, 2020 at 12:23 pm

    much better than trading in to GameStop.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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