Thailand announces tax rates for E85 vehicles

Automakers expressed mixed responses to the government’s new E85 gasohol policy after cabinet ministers in Thailand approved a new excise tax structure for E85 fuel and compatible cars. Vehicles that use E85 fuel would be taxed at rates ranging from 25% to 35% of the factory price, a rate similar to that charged for E20-compatible cars, which were introduced in January. The waiver would run for three years. Suparat Sirisuwanangkura, a senior vice-president of Toyota Motor Thailand and president of the Thai Automotive Industry Association, said the E85 tax structure also struck a balance to minimize the impact on existing production of E20 cars as well as the ongoing eco-car program. He estimated that E85 fuel would be as much as 10 baht (US$0.30) per liter cheaper than premium petrol, given ethanol prices of 17-18 baht (US$0.51-0.54) per liter. (June 4, 2008)