BANGKOK, 16 September 2011 – The Democrat Party has criticized the Government’s policy to reduce tax for first-time car buyers, saying it will increase debts among the people and cause many other problems in the country.
Commenting on the tax refund policy for people purchasing their first car which is scheduled to be implemented by the Government in October, Democrat party-list MP Kowit Tharana pointed out that the policy was only aimed to gain immediate popularity for the ruling Pheu Thai Party without regard to a series of problems that would follow.
Since the tax incentive was expected to cause a frenzy in the automobile market, the Democrat MP said it would force more Thai people into debts. Traffic congestion could also worsen, considering the Government’s target to boost car sales by 500,000 units with the help of the policy. Moreover, impacts on the alternative energy development plan and the second-hand car market will be inevitable.
With a budget of 30 billion THB set aside for the first-car tax cut policy, Mr Kowit noted that the amount would be more beneficial if invested in the improvement of the double track railway system and the promotion of public transportation usage and energy saving. He then questioned who would be responsible for such mishandling of people’s tax money by the Government.