The Excise Department reckons more than 90 billion baht in tax rebates to first-time car buyers will be made over the next three years.
Director-general Somchai Pulsawas said a total of 1.25 million cars and trucks were sold under the first-time car buyer scheme, launched in late 2011 as an initiative to help boost auto sales in the wake of widespread flooding in Greater Bangkok.
The programme, which offered tax rebates of up to 100,000 baht for small-engine passenger cars and pickup trucks, ended on Dec 31.
Total rebates, at 91 billion baht, are three times higher than original estimates by authorities as car buyers flocked in droves to take advantage of the scheme.
Mr Somchai said for fiscal 2013, the Finance Ministry has set aside 40 billion for rebate payments, with another 40 billion to be allocated in the next fiscal year and the remainder in fiscal 2015.
The ministry initially set a budget of just 7 billion baht for car tax rebates in fiscal 2013. So far, 4 billion baht in refunds have been processed.
Rebates will be made only after the first year of ownership. Buyers must also maintain ownership for at least five years.
He added that the Excise Department expects to meet its tax target of 412 billion for the current fiscal year if economic growth is close to the government target of 5%.
About the author
- Writer: Wichit Chantanusornsiri
Position: Business Reporter