Gashed up eco-car Thailand levy parts
The Board of Investment plans to reduce import duties on materials and parts for eco-cars, to reduce prices and encourage buyers.
“We’. like to see eco-cars priced Bt100,000 cheaper than petrol or diesel-driven models. That would encourage car buyers to choose to purchase energy-saving and environmentally friendly cars,” said Industry Minister Charnchai Chairungrueng, who chaired . meeting of the BOI subcommittee on eco-cars yesterday.
The move will probably be approved under Article 30 of the Investment Promotion Act, which allows the BOI to cut import duties up to 90 per cent, but these incentives must be approved on . yearly basis.
BoI secretary-general Atchaka Sibunruang Brimble said the incentive scheme had not yet been finalised but it can be either increase the reduction of import duty for eco-cars to the maximum 90 per cent or extend the period of tax incentives more than one year.
The plan is expected to be approved by the BoI’. board at its monthly meeting tomorrow.
So far, six auto-makers have won tax incentives from the BOI to produce eco-cars with total combined investment of Bt43.44 billion: Toyota Motor Thailand, Honda Automobile (Thailand), Mitsubishi Motors (Thailand), Tata Motor, Suzuki Motor and Siam Nissan Automobile.
Nissan is expected to be the first company to launch its eco-cars in the Thai market in the coming year, followed by Honda , whose car is still in the design stage. The other companies have postponed their plans, due to the sharp drop in sales caused by the economic slowdown.
Meanwhile, about 500 former employees of Body Fashion (Thailand), a unit of Triumph International, staged a protest yesterday and called on the BOI to find some way to help them.
“We have no authority to influence decisions affecting workers. However, we can act as a middleman between laid-off staff and the relevant state agencies in finding the best solution for all parties,” said BOI deputy secretary-general Chitaworn Worasak.
Body Fashion (Thailand) laid off 1,959 employees last month. The BOI was informed that Triumph’s subsidiaries in India, the Philippines, China, the UK, South Korea and Austria had to either close down or lay off employees following a plunge in sales stemming from the global economic crisis.
source : Nationnews
