BANGKOK: The Cabinet has approved a new excise tax structure for vehicles, to take effect in January 2016, that will be in linked to the amount of carbon dioxide emissions.
It also agreed to hike the excise taxes on large luxury motorcycles by 20 percentage points, with immediate effect.
The Finance Ministry had earlier asked the Cabinet to agree to an equitable solution to what it saw as distortions in the tax structure, and to support the automotive industry.
The new excise tax structure is divided into seven types, according to the type of vehicle.
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A 30 per cent tax rate will be applied to sedans and vehicles of no more than 10 seats with a cylinder capacity of no more than 3,000cc and CO2 emission of no more than 150g/km. A 35 per cent tax will be levied on emissions of 150-200g/km, and 40 per cent for emissions of more than 200g/km.
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A 25-per cent tax rate will cover automobiles using E85 or natural gas and with engine capacities of no more than 3,000cc and CO2 emissions of no more than 150g/km. Vheicles emitting 150-200g/km will be taxes at 30 per cent, and more than 200g/km at 35 per cent.
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Hybrid cars with an engine capacity of no more than 3,000cc, emitting CO2 at no more than 100g/km will be taxed at 10 per cent. Those emitting carbon dioxide at 100-150g/km will be taxed at 20per cent, 150-200g/km at 25 per cent, and more than 200g/km at 30 per cent.
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A 3-per cent and a 5-per cent tax will be levied on pick-up trucks with no space behind driver and with a cylinder capacity of no more than 3,250cc, releasing CO2 at no more than 200g/km and more than 200g/km, respectively.
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Pickup trucks with space behind driver, with no more than 3,250cc cylinder capacity and less than 200g/km CO2 emission will be taxed at 5 per cent, and those with emissions over 200g/km at 7 per cent.
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Double-cab pickups with no more than 3,250cc cylinder capacity and less than 200g/km CO2 emission will be taxed at 12 per cent, while those with over 200g/km emissions pay a rate of 15 per cent.
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Rates of 25 per cent and 30 per cent taxes will apply to passenger pickups with a cylinder capacity of no more than 3,250cc, releasing no more than 200g/km CO2 and over 200g/km, respectively.
The Finance Ministry predicts it will garner revenues of around B25 billion from excise taxes in 2016.
Meanwhile, the Cabinet agreed to a Ministry proposal to raise excise taxes on imported luxury motorbikes from 103 per cent to 123 per cent for 800-1,000cc engine capacity. The new tax rate is already in effect.
The measure is expected to bring in some B150 million in extra tax revenue. The ministry reasoned that those with the money to buy such bikes are wealthy enough to pay higher taxes.