B55bn in first-time car buyer rebates filed to date

B55bn in first-time car buyer rebates filed to date

Passenger cars account for 60% of total cars sold under the government's first-time car buyer tax rebate scheme, says Somchai Pulsawas, director-general of the Excise Department.

The remainder sold under the programme are trucks, he said.

As of yesterday, 753,000 applications were filed by car buyers for tax rebates including 441,000 for passenger cars, 151,000 for pickup trucks and 159,000 for double-cab trucks.

The Excise Department estimates the value of the tax rebates to date at 55.5 billion baht, with projected total car sales this year of 800,000 raising the number.

The programme offers first-time car buyers tax rebates of up to 100,000 baht for vehicles priced under 1 million baht.

Buyers will receive the rebates after the first year of ownership and must maintain the title for a minimum of five years.

Passenger cars eligible for the programme must have engines no larger than 1,500cc, although trucks have no maximum engine limit.

The government initiated the scheme late last year to assist the recovery of the automobile sector following the massive flooding.

Mr Somchai said 30-40% of passenger car buyers applying for rebates live in Greater Bangkok, with the remainder scattered across the country.

He said the department estimates 3.2 billion baht in tax rebates will be paid this year to 30,000 buyers who have maintained ownership for the one-year minimum period.

Another 18 billion baht in tax rebates are expected to be paid next year and 30 billion in 2014.

The one-year ownership requirement starts from the date of registration with the Land Transport Department, which in practice could be several months after the purchase and delivery dates.

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