Used vehicle parts import ban on tax, safety concerns

Used vehicle parts import ban on tax, safety concerns

The government has banned imports of used body parts for passenger cars and motorcycles in order to prevent tax evasion, while the Transport Ministry has also banned the registration of cars assembled from used parts.

Statistics presented to the cabinet showed that about 4,000 vehicles assembled locally from imported used body parts were registered in Thailand last year.

Authorities say vehicles assembled from used parts could be unsafe. As well, the practice affects domestic assemblers because vehicles with used parts have lower prices than comparable domestically produced vehicles.

Chalitrat Chandrubeksa, a deputy government spokesman, said some vehicles assembled with used body parts were also equipped with engines using natural gas for vehicles (NGV) to benefit from lower excise tax.

Accordingly, the Transport Ministry will ban the registration of four types of passenger vehicles containing used parts, including those with capacity of more than seven persons and 12 persons, personal trucks and motorcycles.

The cabinet also approved a Finance Ministry proposal to develop NGV stations on land owned by the Treasury Department.

An initial study showed that around 10 such locations in Bangkok were suitable for new NGV stations.

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