300,000 claim new car tax rebate

300,000 claim new car tax rebate

More than 300,000 people have filed claims for the government’s first-time car buyer tax rebate scheme, and lost revenue from the policy is expected to exceed 30 billion baht by year's end, the figure estimated by the state, Deputy Finance Minister Tanusak Lek-uthai says.

Mr Tanusak said since the programme was launched in September last year, the total number of claims had added up to 29 billion baht. By the end of the year, the rebate claims would exceed the government’s estimated figure of 30 billion baht.

About 10,000 applicants had already received the tax rebate worth a total of 849 million baht, he said.  

In the 2013 fiscal year, the Finance Ministry is expected to pay another 18 billion baht in tax refunds under the policy. He said 7.5 billion baht had been allocated by the ministry and the Comptroller General's Department had sought the remaining amount from the central budget.   

The scheme allows first-time car buyers a rebate on actual excise tax paid of up to 100,000 baht for cars priced at no more than 1 million baht.

Applicants are required to keep the car for at least five years. The government expects 500,000 cars to be registered, costing the state 30 billion baht.

From next month onward, Mr Tanusak said, the tax rebate payment would be made only once a month instead of twice -- on the 5th and 20th of each month. The change is intended to allow officials more time to examine the validity of tax rebate claims to avoid repeating last month’s mistake that resulted in a complete halt in money transfers. 

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