Feb, 2017 given the economic ramifications of the excise tax, the dofs presentation noted that the tax reform wont reduce consumer demand or cripple the local automotive industry. Ministry of finance, while the administration of excise tax is the responsibility of the excise department, ministry of finance. This new excise tax delivers fairness in collecting tax. Reforming automobile excise taxes in the asean region for pro. Allow states access to portion of income tax revenue. The committee deliberation was attended by officials from various government departments, including the. Liquor tax reform recommendation the consumption of alcohol in thailand has become an increasing public health concern. Pwc thailand i thai tax 2011 booklet 6 tax credits taxpayers are entitled to credits against their annual tax liability for tax withheld at source. Its excise department under the ministry of finance received technical assistance from the international tax and investment center itic on excise tax reform. Toyota warns about impacts of thailand tax reform mazars. The latest report on the levy has two glaring changes, which look more palatable from a consumer perspective. Lao pdr, thailand and vietnam impose the excise tax while brunei. Jun 27, 2011 these two segments form a majority of the thai alcohol market and closing the gap between their effective tax rates is a precondition for efficient liquor tax reform.
Pdf summary comparison study of excise laws in several. Bird1 professor emeritus university of toronto jel codes. A bill, however, has not been sent to the argentine congress. For example, thai lao khao has an alcohol content of about 35% to 40%, but the maximum excise tax that can be imposed on these beverages is only 400 baht per. Thailand consolidates its excise tax laws while introducing. Tax on registration of secondhand cars 20142015 amount in eur. Annual tax registration renewal driving in thailand.
Taxpayers subject to excise tax and using efps are mandated to efile and epay the corresponding excise taxes due on removals, effective january 1, 2018. The fuel tax in france is based on the energy excise tax and is. Twentypercent excise tax on vehicles priced from p600,000 to p1. Proposed excise tax to add at least 3 pesos to gas, diesel.
Jun 22, 2017 the thai governments new preferential excise tax rates for hybrid and electric vehicles are set to drive greater demand for this type of vehicle, said thai government reduces excise taxes on evs. Read more the oecd s work on tax policy and statistics focuses on providing internationally comparable revenue statistics and offers highquality economic analysis. Taxation in thailand the principal tax law in thailand is the revenue code, which governs three main categories of taxation. In general, thailand s tax administration follows the concept of selfassessment. In the case of dividends received from thai incorporated companies, taxpayers are also entitled to a tax credit for the corporate income. Moldova, new zealand, south korea, south africa, thailand, ukraine, usa. Tobacco and alcohol excise taxes for improving public. In fiscal 2014, excise tax on liquor genereated b64. Mr thanusak said that the auto industry has only just recovered from last years flood, and is installing new machinery in its production lines, and the government recently launched its first car scheme to boost sales and car ownership in the auto sector. Excise taxation reform best practice excise tax policy and. Spa services are also under consideration to be granted excise tax annulment. Revenue from auto excise taxes is said to be allocated for new infrastructure and improvements in public transportation. Thus, the existing excise tax will be canceled at the end of 2015 and the new one will be applied with new car in 2016.
The proposed excise tax on cars has been revised yet again. Comprehensive tax reform program package ctrp such that. Composition of tax revenue and experiences on tax reform in thailand 3. For instance, the excise taxes on cars would be determined by their carbon emissions rather than engine size. Thai government postpones environmental car tax reform. From the initial breakout of the news to the revisions that surfaced, it has caused nothing but confusion among the public as to how the government will levy new cars under the proposed comprehensive tax reform. The new sugar tax will gradually raise the tax rate on many sugar containing beverages and will affect u.
Tobacco and alcohol excise taxes for improving public health and revenue outcomes. Thai government reduces excise taxes on evs, hybrids. Details of tax reform legislation kpmg united states. Environmental fiscal reform, understood here as improved alignment of taxes and taxlike instruments with environmental damages coupled with socially productive ways of using revenues raised, has been introduced in several countries, to varying degreesreport disc.
Automobile excise tax rate search system is a service of the excise department, which returns the excise tax rate for the specified product properties and also calculates the estimated excise tax to be paid. Using vehicle taxation policy to lower transport emissions. The bahamas has a low tax effort due to limited tax handles and underutilization of available ones. Excise duties and other taxes title when first announced date change takes effect budget report paragraph reform of vehicle excise duty ved rates and bands for post2017 cars summer budget 2015 1 april 2017 2. Low carbon green growth roadmap for asia and the pacific. Currently, the excise tax rates are based on the engine sizes and favour vehicles compatible with alternative fuels such as biofuels and hybrid vehicles. As the largest automotive production hub in southeast asia, thailand is making efforts to add electric vehicles. Since last year, discussions about the governments plan to impose excise tax on new vehicles have been going around.
Excise tax thailand organizes its excise taxes within four major categories to address considerations for income redistribution luxury goods and services, health, environment, and morality. Excise tax revision to affect more than alcohol, cars. According to the new version of the car excise tax program by the government, the recent revisions show some glaring changes from the previous one reported last february. Motor vehicle tax and fees collected from provincially registered motor vehicles, which are then transferred to the respective local administrations. The tax reform proposal will have to be passed by congress before it becomes law. The thai government derives revenue predominantly from taxes, the most important of which include income tax, valueadded tax, excise tax, and import duties sujjapongse 2005. The tax reform measures generally are effective 1 january 2020, but certain provisions have a specific effective date. The act consolidates seven separate excise duty regulations and applies international standards for excise taxes. In the framework of a large scale tax reform, the belgian federal government will implement an equalization of diesel and petrol excise rates over the 20162018 period.
Under the current excise system traditional producers of white spirits have enjoyed preferential treatment that is now no longer sustainable if alcoholic consumption is to be reduced. Taxpayers have a legal duty to declare their income and pay tax to the authorities. Restructuring the excise taxation of motor vehicles national tax. Argentine executive power proposes new comprehensive tax. In case of a structural change, the excise department has studied how to collect motor vehicle excise tax in accordance with the quantity of carbon dioxide released. Jul, 2017 sunthorn tunmuntong the finance ministrys latest excise tax rebate measure is pulling the trigger on boosting the production and use of electric cars in the country and aligning the industrial promotion strategy closer to the governments green policy. Policy 1 draw up the excise tax master plan as a guideline for excise tax development, to be studied with private sector. Effective from january 2015 excise tax rate of p18. The excise departments performance according to strategies and approaches the 2010 operational plans of the excise department to modernize an organization could be summarized into 4 main areas, namely.
If you have a motorbike or a car, each year you have to renew the registration the tax sticker. Its an easy process if your car or bike is less than 5 years old. Micelotta on november 6, 2017 posted in interest deductibility, international tax, proposed reform the house tax bill released last week includes two measures that limit the ability of multinational groups to reduce their u. Nov 07, 2017 the senate is expected to unveil its own tax reform plan on thursday, the same day house leaders hope to clear the tax bill through the ways and means committee the first hurdle to getting the. The outcry of certain car companies about the preferable tax rates on alternativefuel models at the expense of other environmentallysound technologies has led to the tax reform. As a result, thailand has revised the concept of collecting tax by based on the emission of co2. Changing the vehicular tax structure should not be done now, he said, as it could require the auto industry to change its production lines, which will be a burden for the sector. The house committee on ways and means, chaired by rep.
For these cars, the excise tax rate will fall from 17% to 14%, but the excise tax on a private car with an engine capacity of 1,780 cc to 2,000 cc will increase by a range of 3%. The new auto excise tax proposal is now segmented into five price groups, one more than its predecessor. Reducing traffic congestion, however, was noted by dof undersecretary karl chua as a secondary motive for this tax increase. The latest changes to ph automotive excise tax rates. Included in this package is the proposed excise tax increase on automobiles. Thai excise department implements new sugar tax on. Liquor tax reform recommendation the consumption of alcohol in thailand. The new car excise tax proposal by the dof and its counterpart in congress, house bill hb 4774, is structured to even out the income tax reduction. Dec 12, 2017 its increasingly looking like the proposed tax reform for acceleration and inclusion act train, which includes a substantial increase in automotive excise taxes, is going full steam ahead. If toyota could not make the cars profitably in thailand, it may shift the production to indonesia, said mr. Detailed discussion corporate income tax the tax reform proposal would gradually reduce the corporate income tax rate. Proposed excise tax to add at least 3 pesos to gas, diesel prices. Revised depreciation schedule for imported motor vehicles issued, october 29, 2014. Jan 25, 2017 based on an amended version of the department of finance dof tax reform proposal last year of slapping a onetime php 6 levy per liter of diesel fuel an in order to reflect a long overdue.
House ways and means committee chair dave camp, rmich. Dakila carlo cua, convened today for the third deliberation on the comprehensive tax reform package proposed by the department of finance dof. Jonathon flegg, policy unit, ministry of finance date. Recent reform thailand excise duty automobiles co2 emissions based tiers from 112016 excise policy 6 months after enactment codification of all excise laws to a single tax code suggested retail price as a new tax base. When it comes to implementation, the new proposal will be. Cyprus, and thailand are used to highlight areas that could be addressed, leading to.
The thai excise department implemented for first time ever, an excise sugar tax on certain beverages to reduce consumption of sugar and to increase health consciousness. Deputy director, vat regulation of industrial sector. Advisory on dedicated email account for attachment to excise tax return bir form no. Even though the cost of a lithiumion battery, the most expensive component of an electric vehicle, has significantly decreased since 2009, several overseas governments have continued their support mechanisms to further reduce electric car prices. More on the house bills excise tax tax reform and transition.
In thailand, the excise tax under the current excise tax act b. Ntrc study shows philippine auto excise tax lowest in. Pwc thailand i thai tax 2014 booklet losses 21 withholding tax on domestic payments 22 tax credits 23 withholding tax on foreign payments 23 double tax treaties 24 group taxation 32 holding companies 32 thin capitalisation 32 transfer pricing rules 32 tax administration 35 penalties, surcharge and appeal 36 value added tax page 37. Thailand excise tax law thailand business supplements. The global automotive tax guide is only available in pdfformat. You can only stall so long on the details of tax reform.
Fivepercent excise tax on vehicles priced below p600,000. Excise system of thailand specific tax is a volume x rate assessment. Pwc thailand i thai tax 2014 booklet 5 will be nondeductible. Excise tax reform 1 excise tax act 2 playing cards act 3 liquor act 4 tobacco act 5 excise tax code act 6 excise tax allocation act 7 liquor tax allocation act new excise tax act. Aug 25, 2012 such a method of tax adjustment is intended to reduce environmental problems. Thailand may therefore miss out on the opportunities stemming from toyota motors decision this week to move its production sites from japan if the costs of car production in the country are higher as a result of the tax reform. Nov 06, 2017 more on the house bills excise tax by david h. Mar 30, 2017 in thailand, the excise tax under the current excise tax act b. Fortypercent excise tax on vehicles priced from p1. Real estate registration fee distributed by the source of revenue. E 2560 of 2017 there are 21 excise goods in thailand which are generally divided into 2 i. Apart from customs duty, all imported vehicles are subject to a 1050% excise tax based on co2 emissions, a 10% interior tax and a 7% valueadded tax, just like thai made vehicles.
Automobile excise tax is the lowest in the country across southeast asia and covers the least number of vehicles, justifying government reform plans that seek to discourage car. A number of measures were selected to strengthen the environmental protection by enforcing the polluter pays principle. Effective from january 2016 excise tax rate of p21. Excise tax reform will consider products and services that cannot be categorized into the mentioned four groups, and should no longer be levied excise tax such as wool carpets and lead crystal products. Drinks with 6g to 10g per 100ml of sugar would be subject to a rate that would raise their retail prices by at least 20%. In this context, in mid2011, the excise department of thailand announced a green tax proposal. Agenda the thai excise system and context for reform the master plan process new products. A request for excise registration must be submitted to the excise area office where the factory, business office or service facility is located, within thirty days before the date of production, the start date of import, or the start date of service. The house of representatives ways and means committee approved a tax package proposal substituting house bill hb 4774, which failed to get approval when congress adjourned last march 18, 2017. Effective from january 2014 excise tax rate of p15.
Rotman school of management university of toronto 105 st. In passing its sin tax reform act 2012 republic act ra 10351, the philippine. Senate approves tax reform bill, new excise taxes on cars. The indirect tax reform mainly seeks to merge the existing vat and business tax. Two rates of the excise tax were proposed based on different sugar levels.
November 20 21, 2014, the excise department of thailand conducted the directorgeneral meeting of asean member countries on automobile taxation on 20 nov, and the thai excise tax law reform forum on the following day. Dec 09, 2016 according to andaya, the simple proposal for the new car excise tax bracketing system is as follows. Environmental tax reform in developing, emerging and transition. In general, the tax reform measures reflect changes to certain provisions of mexicos income tax law, the value added tax vat, the excise tax law, and the federal fiscal code. Excise tax page 49 basis of taxation 49 taxable goods and services 49 petroleum income tax page 51 of taxationbasis51 taxable income 51 tax 51administration penalties and surcharge 51 local taxes page 52. The new structure of excise tax will support cars which comply with phase 2 of the eco car project, as these cars will save fuel and be more environmentally friendly. A report by gma news online says the bicameral conference committee debating train has reconciled differing provisions between the acts senate and house. For thailand, the excise tax cut policy covers four types of vehicles. The excise tax shall be no more than the rate which is specified by the excise tariff schedule. Excise tax for new car 2016 thailand automotive institute. Tax composition and issues in sri lanka direct and indirect tax mix direct tax.
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