Govt to help broke first-car buyers
- Published: 15/02/2013 at 04:47 PM
- Online news:
The Finance Ministry will be "accommodating" towards first-time car buyers who cannot make payments on cars bought through the government's populist policy, according to deputy minister Tanusak Lek-uthai.
"I will consult with the Comptroller-General's Office to see if we can hold talks with the auto leasing companies about whether some leeway can be given [if buyers cannot meet payments]," he said.
"I don't want to see the government having to sue people. I'm going to set as a policy that we have to help the people."
The tax rebate scheme was launched in late 2011 as a means of boosting consumer spending and the auto sector following sharply declining sales in the wake of the massive floods.
The programme, open to small-engine passenger cars worth less than 1 million baht, double-cab and pickup trucks, exceeded all expectations and helped drive auto production in 2012 to an all-time record of 2.45 million units, up 123% from the year before. Of this, domestic sales totalled 1.43 million, up 161% from the year before, according to the Thailand Automotive Institute.
So far, over 4 billion baht in tax rebates have been paid out to some 50,000 first-time car buyers who purchased their car at least 12 months ago. By September, the Finance Ministry expects up to 70% of the 1.25 million participants under the programme will have received their rebates.
About the author
- Writer: Wichit Chantanusornsiri
Position: Business Reporter