Nano to be hit by the new tax policy of Thailand Government

nano small car Nano to be hit by the new tax policy of Thailand Government

The new tax policy of the Thailand Government in exempting imports from tax rebate for the first time car buyer program can create a trade dispute with countries like China, India and Malaysia. As per Malaysia’s Proton, this exemption is in violation of the Asean Free Trade Agreement. Also, Proton will be hit adversely by the new trade regulation as the company exports small engine cars to Thailand.

Tata Motors’ plan to import the Nano from Indonesia to Thailand will also be hampered leading the Indian car manufacturers to raise questions. Also, this comes at a time when Tata Motors is looking at overseas market to boost sales of its Nano. Along with it, the sale of China’s Chery cars and ten models of Korea’s Hyundai will be affected.

Only the locally produced pick-up trucks and engines under 1500cc are getting a rebate of 100000 baht while the engines till 2000cc will have to pay an excise of 30 percent. This shows that such move in Thailand reveals a discrimination policy against the imported cars. Thailand however supports this move saying that Malaysia had once imposed higher taxes on imports to protect the sales of Proton’s Saga.