ANNOUNCEMENT 16 Jul 2009In July 2009, the government of Thailand announced a change in import duties.
NUMBER OF INTERVENTIONS
The Board of Investment, Press Release No. 111/ 2009 (O.72), 16 July 2009.
On July 16th 2009 The Board of Investment (BOI), part of the Ministry of Industry of Thailand, granted a special incentive to eco-car projects. The BOI approved the 90% reduction on import duties of raw materials and parts to eco-cars projects for two years. Article 30 of the Investment Promotion Act allows the BIO to introduce such measures but such incentives must be renewed on a yearly basis.
The Industry Minister said that the incentives will only be applied to materials that cannot be produced locally.
The justification for this initiative, according to the Press Release No 111/2009 of the Ministry of Industry, is to that the reduction of import duties should help "eco-car manufacturers by lowering their production costs and reducing their burden in sourcing parts that are not available or locally produced in Thailand". This measure is also supposed to encourage investment in the eco-car sector and help develop this industry. On July 13, 2009 the Industry Minister said "we would like to see eco-cars priced Bt 100,000 cheaper than petrol or diesel-driven models. That would encourage buyers to choose to purchase energy-saving and environmentally friendly cars."
A working committee consisting of the representatives of BOI, the Office of Industrial Economics and the Thai Automotive Institute has been appointed. This committee will review applications under this scheme.
According to the Thai News Service (in a report on 14 July 2009) the following six auto-makers in Thailand have won 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 Autmobile.