500,000 new cars on the road soon
First car buyer refunds will cost govt 30 billion paid for by taxing car industry. Lawsuits for those who game the system.
First car buyer refunds will cost govt 30 billion paid for by taxing car industry. Lawsuits for those who game the system.
Reaction to the plan is mixed. Automakers don't like the plan (Read article), but banks are happy with the new loans they will make (Read article).
Click button to listen to First Car Rebates Nursing to download
Car plan gets green light, Sales expected to get huge boost of 500,000 by Chatrudee Theparat, Amornrat Mahitthirook & Wichit Chantanusornsiri
The move, expected to boost car sales by 500,000, is part of the ruling Pheu Thai Party's populist policies proposed during the election campaign.
The scheme will run from Friday until Dec 31 next year to help middle-income earners who are unable to afford their first cars.
The scheme will be applicable to cars with engines no bigger than 1,500cc or to pickup trucks priced at no more than one million baht with engines bigger than 1,500cc.
Buyers eligible for the privilege must be at least 21 years old and must maintain ownership of the vehicle for their own use for at least five years.
The buyers of the vehicles can seek tax refunds from the Revenue Department one year after purchase. The amount, which will be issued through cashier cheques, will be equal to the amount of excise tax charged on the sale of each vehicle but will not exceed 100,000 baht.
For example, a buyer of an eco-car worth 500,000 baht can get a tax refund of up to 85,000 baht, equivalent to a percentage of excise duties charged on this vehicle.
Deputy Finance Minister Boonsong Teriyapirom said the cabinet yesterday agreed to launch the policy on Friday, 15 days ahead of the original schedule, to prevent possible market disruption as would-be buyers could stop buying to wait for the scheme to start.
"This policy is expected to boost domestic car consumption by 500,000 units," he said.
He said preventive measures were being formulated against those who want to enjoy the tax breaks but do not want to follow the requirements.
"The government may need to file a lawsuit forcing them to return the money if they violate the requirements, such as by selling the cars before five years or if they default on loans to pay for the cars," he said.
He said the cabinet also approved a budget of 100 million baht to implement this project, including public relations.
"The scheme will cause the government to lose some 30 billion baht in tax revenues but the government expects to offset this by increasing corporate tax on the car industry," he said.
The government will set aside a budget to compensate for the expected revenue shortfall in the 2013 fiscal year.
The National Economic and Social Development Board expressed concern at the meeting that the 500,000 new vehicles to come onto the roads would worsen the traffic problem and urged the government to accelerate its mass transit development work.
In another development, the cabinet also approved the extension of a diesel tax cut for another three months until Dec 31 to keep the diesel price below 30 baht a litre.
The measure is expected to cause the Excise Department to lose some 25 billion baht in revenue, Mr Boonsong said
Korn Chatikavanij, a deputy leader of the opposition Democrat Party and former finance minister, questioned the first-car tax rebate programme as a potential waste of taxpayer funds.
"Who really benefits? The money for this programme is enough to build one new mass transit route," he said. "Is it really necessary to use tax funds to help support an auto industry that is already flourishing."
Mr Korn noted that while participating car buyers would certainly gain, the actual benefits to the public were debatable.
"The 30 billion baht programme might benefit 300,000 people. However, what will the general public get?" he asked.
Meanwhile, the Land Transport Department announced it is ready to facilitate the government's first-time car buying scheme.
Department chief Thianchot Chongphiphian said the department would set up a computer programme for the tax authorities to share information about car owners.
The Revenue Department will be responsible for the expense.
However, he noted that the department's database of registered car owners before 2006 is not complete, especially for drivers in the provinces.
Tax authorities will have to try to work out this problem. And it's possible that those who bought cars before 2006 may get the benefit of the doubt if the database shows nothing," he said.
He said the Excise Department would issue a "non-transferable" stamp in car ownership registration papers to prevent transfer of the vehicles bought under the programme during the five-year period.
The first-time car buyer scheme has drawn mixed reactions.
Chutamas Khamkaew, a Chiang Mai University student, voiced concern that the scheme would lead to problems.
"Traffic congestion will worsen when more people drive. Oil prices may also go up too, " she said.
Chalermsak Sepa, also a student, said the scheme is a good incentive for car purchases. "It will help some people save a lot of money. And I think it will help people who are thinking about buying a car make their decisions more easily," he said.
(Source: Bangkok Post, Auto Scoop, Car plan gets green light, Sales expected to get huge boost of 500,000, 14/09/2011, Chatrudee Theparat, Amornrat Mahitthirook & Wichit Chantanusornsiri, link)
Car Industry Vocabulary
the move, expected to boost car sales - the action, expected to boost car sales
gets the green light - project approved, given permission to go ahead, to start
expected - believe will happen คาดว่า (จะเกิดขึ้น)
boost - to increase; to strengthen เพิ่ม; ทำให้มีกำลังมากขึ้น
boost car sales - increase car sales
mixed reactions - some people like it, some people hate it, some people don't care (indifferent)
game the system - "using the rules and procedures meant to protect a system in order, instead, to manipulate the system for a desired outcome" and your own personal advantage and gain (find a way to gain without following the rules or requirements, break or avoid the rules and not get caught, get away with it, bend the rules, play the system, milk the system, manipulate the system, abuse the system) (See Wikipedia)
controversial - a topic that people disagree about (argue and debate about) ที่เป็นที่ขัดแย้ง ซึ่งก่อให้เกิดการโต้แย้ง ความไม่ลงรอยกัน
rebate - a reduction, return or refund of money that has already been paid (for something the customer bought) (See Wikipedia)
tax rebate - when the government gives back to the customer part of the tax they already paid on something they bought
scheme - a plan that is developed by a government or large organisation in order to provide a particular service for people แผนการ โครงการ
support - help, by giving money, for example สนับสนุน
ruling - has political power and controls the country
populist - a politician who claims to care about the interests and opinion of ordinary people
proposed - suggested, presented as a possible project (but not yet chosen or decided upon)
election - the process of choosing a person or a group of person for a position, especially by voting elect (v) electoral (adj) synonym: the polls การเลือกตั้ง
campaign - a planned series of activities designed to persuade voters to vote for a particular candidate or political party การรณรงค์หาสียง
income - money that people receive from work or some other source, used for household consumption and savings
middle-income earners - not rich, not poor, in the middle
afford - to have enough money to be able to pay for something มีเงินพอจับจ่าย ซื้อหา มีเงิน/ทุนพอ
unable to afford their first cars - don't have enough money to buy their first car
applicable - relevant to or affecting a particular situation ที่สามารถนับไปปรับใช้ได้
eligible - meet the requirements or conditions to be able to so something (requirements in a law for example) มีสิทธิ มีสิทธิตามกฎหมาย มีสิทธิชอบธรรมตามกฎหมาย เอื้อด้วยกฎหมาย ที่มีคุณสมบัติพร้อม ซึ่งมีคุณสมบัติเหมาะสม
privilege - a special benefit that is available only to a particular person or group; when some people get to do things that others can't เอกสิทธิ์
maintain - to keep รักษา
vehicle - a machine that you travel in or on, especially one with an engine that travels on roads, e.g., a car, bus, van, truck, etc. ยานพาหนะ
maintain ownership of the vehicle for their own use for at least five years
vehicles - machines with an engine used to carry people or goods from place to place ยานพาหนะ
refund - a reimbursement; an amount of money that is given back to you เงินที่คืนให้
tax refund - when you receive back part of the tax you paid in the past
purchase - the act of buying something
issued - made available ออกใหม่
cashiers cheque - a check written by a bank against its own bank account (almost the same as cash) (See Wikipedia)
excise tax - taxes made by a government on some types of goods produced and used within their own country ภาษีสำหรับสินค้าในประเทศ
excise duties - same as "excise tax"
exceed - to go beyond an official limit; to be greater than a number or amount เกินปริมาณ เกินกว่าที่กำหนด
equivalent - the same as เท่าเทียมกันกับ
launch - to start something เปิดโครงการ, เริ่มต้น, เริ่มทำ
policy - a set of plans or action agreed on by a government, political party, business, or other group นโยบาย (See Wikipedia)
launch the policy - begin the policy officially
ahead of schedule - doing things quickly before needed to be done (according to the schedule; done before the deadline)
disruption - a situation in which something cannot continue because of a problem; prevented from operating normally การขัดขวาง, การหยุดชะงัก
market disruption -
domestic - within the country ภายในประเทศ
consumption - money spent by households and families on goods and services การบริโภค (See Wikipedia)
boost domestic car consumption - increase the number of cars bought inside the country
measures - actions taken to deal with a problem มาตราการ
preventive measures - actions taken to stop (or "prevent") something from happening
formulate preventive measures - create preventive measures
tax break - a reduction in tax that must be paid
enjoy the tax breaks - receive the reduction in tax
file - to take official action like making a complaint ยื่นคำร้อง
lawsuit - a case that a court of law is asked to decide involving a disagreement between two people or organisations คดีที่อยู่ในระหว่างการฟ้องร้อง
file a lawsuit
violate - to do something that is against a law, rule or agreement, break a rule, law or agreement ฝ่าฝืนกฎหมาย ละเมิดกฏหมาย
violate the requirements - don't do the things that you are "required" to do, don't do the requirements, don't meet the requirements
default on loan - failure to repay a debt; when a borrower fails to pay borrowed money on time การผิดสัญญา
budget - the amounts of money that an organisation has available to spend on different things during a period งบประมาณ (See Wikipedia)
approved a budget - when high level managers or authorities officially say the budget is ok (so the money in the budget can be dispensed and spending can begin)
implement - put a plan into action, make a plan work นำ แผนหรือนโยบายมาปฏิบัติ นำมาใช้
implement this project - do the project, put project plan into action, execute plan
public relations (PR) - the business of giving the public information about companies (organizations, people) to create a good public image and feelings about the organization (See Wikipedia)
revenues - money received by a business or government รายได้
tax revenues - money coming into the government from taxes
offset - move in the opposite direction, reduce by moving in the opposite direction, counter-balance, compensate in the opposite direction ("x offsets y" means "x reduces the effect of y"), make up for (profits from the manufacturing business offset losses from the retail business) (See glossary)
set aside a budget
compensate - pay for a loss or damage
revenue - income from taxes or business activities รายได้
shortfall - an amount which is less than the level that was expected or needed จำนวนที่ขาดไป, ปริมาณที่ขาดไป
revenue shortfall - less mony coming in than expected
compensate for the expected revenue shortfall
fiscal - connected with the government budget and spending, i.e., public money เกี่ยวกับงบประมาณ
fiscal year - the calendar used for government accounting, budget and spending
concern - a worry ความกังวล
meeting - when a group of people come together to discuss issues and make decisions การประชุม
traffic - the number traveling to a place during a period of time (people, aircraft, ships, trains, cars, trucks, etc.) ความหนาแน่นของจำนวนคน หรือยานพาหนะในช่วงเวลาใดช่วงเวลาหนึ่ง
worsen the traffic problem - more traffic jams and crowds of cars on the road
urged - strongly encouraged, strongly advised people to do something, requested them to do, tried to get them to do วิงวอน
accelerate - go faster and faster , at an increasing rate; to cause to happen more quickly เร่ง
mass - large numbers จำนวนมหาศาล
transit - the act of moving from one place to another การเดินทางผ่าน
development - the gradual growth and formation of something
accelerate its mass transit development work
extension - an increase in the power of effect of something ขยายขอบเขตออกไป
the extension of a diesel tax cut for another three months
measure - a firm action taken to solve a problem or stop an a dangerous unpleasant situation มาตราการ
deputy leader - the person whose rank is immediately below that of the leader of an organisation, a person who is given the power to do something instead of another person รอง, ตัวแทน,ผู้รักษาการแทน
opposition - of a political party that is not part of the government or a group which is against the government ฝ่ายค้าน ผู้ต่อต้าน
potential - possible ความเป็นไปได้
taxpayer funds - money received by the government from taxes paid (income taxes, VAT taxes, alcohol taxes, etc)
benefits (noun) - goods things that can happen from an activity or project ผลประโยชน์
X benefits from Y (verb) - X gets benefits from Y
mass transit - transportation such as bus, subway, train, that can carry large numbers of people around a city quickly
route - the way that planes, buses, trains, or ships travel regularly เส้นทางของรถ เรือ เครื่องบิน,etc.
mass transit route - the tracks a train travels along, the streets a bus travels along, etc ...
flourishing - doing well, successful, making good profits
auto industry already flourishing - the auto industry is already doing well (is already profitable)
actual - real; existing in fact จริง
benefit (noun) - help, an advantage or some good thing that people get from something ผลประโยชน์
actual benefits to the public were debatable - many provide little benefit to most people
facilitate - help achieve goals, support ทำให้ง่าย ทำให้สะดวกขึ้น
authorities - government officials, the police or people in official organisations who have the legal power to make people obey laws or rules เจ้าหน้าที่ (ตำรวจ หรือผู้มีอำนาจ)
tax authorities - government officials and departments that collect taxes
share - to have or use something at the same time as someone else ใช้ร่วมกัน
share information - let others have and use the information you have (example; a computer database of car owners)
database - a large amount of information stored in a computer in an organised way ฐานข้อมูล
registered - officially recorded as a business with the government (and given permission to operate) (
registered car owners - people who own a car officially and legally (paying tax to government and getting owndership recorded)
work out this problem - solve this problem
doubt - not know for sure if something is true or false, uncertain
get the benefit of the doubt - accept what someone says or claims is true (even though you cannot be sure about it)
transfer - to official arrange for someone else to be the owner of something, also called "transfer of ownership" โอน
non-transferable stamp - make official documents to show that the car cannot be sold for five years
prevent transfer of the vehicles - to stop people from selling the car to others and also stop people from buying the car for others (nominee problem)
issue - to give or provide something official แจกจ่าย to officially announce or give out ออก, ออกประกาศ, ออกคำสั่ง
registration - recording in an official list
car ownership registration papers - the official government papers (documents) that show and prove that you own the car
voiced - said what you think about a particular subject, especially to espress a doubt, complaint, etc. that you have about it แสดงความคิดเห็น
voiced concern - said they were worried
traffic congestion - a situation in which a place is crowded with cars, trucks, buses, etc แน่นขนัดไปด้วยรถห
incentive - something that makes you want to do something or work harder, because you know that you will benefit by doing this; reward to encourage certain behaviour สิ่งกระตุ้น
