Thailand to review tax incentives for carmakers

Tax reforms for the Thai automobile sector will be aimed at supporting the development of alternative fuel systems as well as protecting car manufacturers, according to the Thai Finance Ministry. Representatives of the Finance, Industry and Energy ministries are working with the National Economic and Social Development Board to draft a new development strategy for the auto sector. Local industry representatives will also be invited to comment and offer their views. Tax reforms are likely to figure prominently in the plan, with fuel-efficiency incentives for automakers and consumers. Policymakers also want to protect what they see as a key competitive niche for the local industry – light pick-up trucks, a segment that dominates vehicle sales thanks to favorable tax rates and continuous innovation by automakers. (August 13, 2009)