The Thai government has rejected calls from its ailing local car industry to cut taxes and guarantee payments in an attempt to boost domestic market sales.
Car sales in Thailand plunged nearly 30% year-on-year in January, the eighth consecutive month of decline, leading industry figures to appeal to the government for help, Agence France-Presse (AFP) reported.
The Federation of Thai Industries requested a 3% reduction in excise tax, but not more than THB15,000 (US$430) across all models, individual tax rebates and a guarantee for down payments made on new vehicles but prime minister Abhisit Vejjajiva said there was no guarantee the measures would prop up sales.
“The auto industry’s requests… are not the most suitable measures and they would affect other industries,” Abhisit told AFP.
“The government will ask the Bank of Thailand and finance ministry to look into providing loans for car purchases,” he added.
