Move to scrap tax on specially modified vehicles

The Excise Department is preparing to issue a ministerial regulation to waive taxes on cars designed for the elderly or people with disabilities, down from the current rate of 25-40%.
According to Ekniti Nitithanprapas, director-general of the department, vehicles with more than 10 seats, such as passenger vans, are currently exempt from excise tax.
However, if a vehicle is modified, for example by removing seats to install special equipment for people with disabilities or elderly people who require wheelchair access, thereby reducing the number of seats to fewer than 10, the vehicle is subject to an excise tax rate of 25-40%.
To promote equality, improve convenience for people with disabilities and make preparations given the aged society, as well as supporting the country’s goal of becoming a medical hub, the Excise Department will propose to the Finance Ministry a regulation to waive the excise tax applied to vehicles adjusted for elderly people or people with disabilities, said Mr Ekniti.
To prevent misuse of this policy to avoid taxes, the department will require verification that the vehicle modifications are genuinely for disabled or elderly people, with relevant agencies being responsible for inspection and certification.
In addition to the ministerial regulation, he said the department plans to issue an announcement specifying the guidelines and requirements for equipment for people with disabilities and the elderly, such as lifts, seatbelt systems and wheelchair securement systems.
This statement would include specifications for symbols and text indicating that the vehicle is for the disabled or elderly people.
According to Mr Ekniti, this measure not only helps people with disabilities and the elderly, but also promotes the production and use of innovations in the automotive industry.
He said the department no longer focuses solely on taxing products that impact the environment, health or those that are considered to be luxury items, but also prioritises societal welfare.
For example, the department introduced the sugar tax to encourage beverage producers to reduce the sugar content in their products in an effort to address the surge in cases of diabetes in Thailand.
The sugar tax is calculated based on sugar content: drinks with more than 14 grammes of sugar per litre are taxed at 5 baht, those that have more than 10 grammes of sugar per litre are taxed at 3 baht, those with more than 8 grammes of sugar per litre are taxed at 1 baht, and those with less than 6 grammes of sugar per litre are exempted from the tax.
Over the past 4-5 years, this measure has resulted in a significant reduction in sugary beverages, with the production of drinks containing more than 14 grammes per litre decreasing from 819 million litres per year to just 16 million litres per year.