Gov proposes new tax regime to promote eco-friendly cars

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BANGKOK, 1 May 2011 (NNT)-Director of Good Governance for Social Development and the Environment Institute Mr. Bundoon Setsirot has shown his support for the Government’s proposed tax restructuring for cars in a bid to save the environment.

Mr. Bundoon said the new tax should be calculated upon two reasons. One that it will encourage manufacturers to make their cars more environmentally friendly based on the amount of carbon dioxide being released into the atmosphere.

And two, the amount of tax collected on each vehicle should increase according to its value. Mr. Bundoon said this method would, in return, promote social equality.

Meanwhile, Director of Ecological Alert and Recovery Thailand Ms. Penchom Saetang expressed her agreement on the new tax regime but doubted on the criteria that would be adopted. She explained that several factors could be taken into account in determining tax rates for vehicles. They could either be the type of engine components or the amount of green house gas emitted from the car.

She also called for the government to consider raising tax rate for sub standard car engines given that they were the second worst green house gas producer after the industrial sector.