Rebates Paid to 10,000 Thai First-Time Car Buyers

More than 300,000 people have filed claims under Thailand’s first-time car-buyer tax-rebate scheme, and the cost is expected to exceed the government’s estimated TB30 billion ($976.6 million) by year's end.

Deputy Finance Minister Tanusak Lek-uthai says the number of claims already totals TB29 billion ($944 million).

About 10,000 applicants have been paid rebates adding up to TB849 million ($27.6 million).

Tanusak tells the Bangkok Post newspaper that in the 2013 fiscal year, the finance ministry is expected to pay another TB18 billion ($585.8 million) in tax refunds. He says TB7.5 billion ($244.1 million) has been allocated by the ministry, and the Comptroller General's Dept. is seeking the rest from the central budget.

First-time car buyers qualify for a rebate of up to TB100,000 ($3,254) as long as they register this year, even if delivery is not taken by Dec. 31.

Buyers must submit claims with the excise department and register again within 90 days after delivery is taken. Refunds are paid within a year of purchase.

To qualify for the rebate, vehicles must be built locally, have a maximum 1.5L engine capacity or be double-cab pickup trucks with unlimited engine capacity and cost no more than TB1 million ($32,547). Buyers must retain ownership of the vehicle for at least five years.

The government expects 500,000 vehicles to qualify for the rebate.