New vehicular excise tax rates depend on CO2 emissions, from 2016

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BANGKOK, Dec 19 – The Cabinet yesterday approved a new excise tax structure to take effect in January 2016 in accord with a vehicle’s quantity of carbon dioxide emissions, and 20 per cent higher excise taxes on luxury motorbikes and motorcycles to take immediate effect. 

The Finance Ministry earlier asked the Cabinet to agree to an equitable solution to the tax structure’s distortion, for fairness in tax collections, and to support the automotive industry.

The new excise tax structure is divided into seven types according to the type of vehicle.

A 30 per cent tax collection 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.

A 25-per cent tax collection will cover automobiles using E85 and natural gas and a cylinder capacity of no more than 3,000cc and CO2 emissions of no more than 150g/km. A 30 per cent tax will be applied to the emission quantity of 150-200g/km, and 35 per cent for more than 200g/km.

Hybrid cars with a cylinder capacity of no more than 3,000cc, emitting CO2 at no more than 100g/km will be taxed t 10 per cent. Those releasing carbon dioxide at 100-150g/km will be placed with 20-per cent tax, at 150-200g/km with 25-per cent tax, and at more than 200g/km with 30-per cent tax.

A 3-per cent and a 5-per cent tax collection are levied at pickup 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 at over 200g/km, respectively.

Pickup trucks with space behind driver with no more than 3,250cc cylinder capacity and less than 200g/km CO2 emission are taxed at 5 per cent, and those with emissions over 200g/km taxed at 7 per cent.

Double cab pickups with no more than 3,250cc cylinder capacity and less than 200g/km CO2 emission are taxed at 12per cent, while those with over 200g/km emissions taxed at 15 per cent.

Twenty-five per cent and 30 per cent taxes are levied on 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 will receive revenues of around Bt25 billion from excise taxes in 2016.

Meanwhile, the ministry also proposed to Cabinet raising excise taxes on imported luxury motorbikes to 123 per cent for 800-1,000cc cylinder capacity from the current 103 per cent. The new tax rate takes effect today.

The measure is expected to help the government gain more revenue of some Bt150 million. The ministry said those able to purchase such bikes are wealthy enough to pay higher taxes.