Aug 14, 2014

Yingluck's First Car tax refund project proved disaster

TDRI concluded that the tax refund for 'first personal car' policy of previous Yingluck government was a complete financial disater for government as well as private sectors alike.

  • Taxpayers lost tax revenue of around 82 billion Bahts.
  • Car dealers suffered from false high demands, later had to give heavy discounts for their over stocks of cancelled reservations.
  • Vehicle Manufacturers / Assemblers suffered because of a drastic purchase slow down in following year.
  • Second-hand car dealters lost a lot of money since most people went to purchase brand new cars instead.
  • Car rental services suffered because people bought their own cars instead.
  • Financial firms suffered because of bad car loans, and extended payments.
  • The state lost excision tax as well as value added tax (VAT) in part.

Ref: from facebook source