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Proposal to Eliminate Tax on Specially Modified Vehicles

Proposal to Eliminate Tax on Specially Modified Vehicles

The Excise Department is set to issue a ministerial regulation that will eliminate taxes on vehicles specifically designed for the elderly and individuals with disabilities, which currently face an excise tax rate of 25-40%.

Ekniti Nitithanprapas, the department’s director-general, noted that vehicles with more than 10 seats, such as passenger vans, are currently exempt from excise tax. However, if a vehicle is modified—such as by removing seats to accommodate special equipment for elderly individuals or those requiring wheelchair access, thus bringing the seat count to below 10—it becomes subject to this tax rate.

To promote inclusivity, enhance convenience for those with disabilities, and prepare for an aging society, as well as to support the nation’s aim of becoming a medical hub, the Excise Department will propose to the Finance Ministry a regulation to waive the excise tax on vehicles modified for elderly or disabled individuals, Mr. Ekniti explained.

To prevent potential misuse of this tax exemption, the department will mandate verification that modifications are genuinely intended for elderly or disabled users, with relevant agencies assigned the responsibility for inspection and certification.

In addition to the proposed regulation, the department aims to issue guidelines detailing the necessary modifications and equipment for vehicles intended for the elderly and disabled. This includes requirements for lifts, seatbelt systems, and wheelchair securement systems, as well as specifications for symbols and text designating the vehicle’s purpose.

According to Mr. Ekniti, this initiative will not only assist people with disabilities and the elderly but will also encourage innovation in the automotive industry.

The department has shifted its focus from solely taxing products that have environmental or health impacts or those deemed luxury items, to also prioritizing societal welfare. For instance, the recent implementation of the sugar tax aims to incentivize beverage manufacturers to decrease sugar content in their products to combat the rising diabetes rates in Thailand.

The sugar tax is structured based on sugar content: beverages with over 14 grams of sugar per liter incur a tax of 5 baht, those with more than 10 grams are taxed 3 baht, and drinks with over 8 grams are taxed 1 baht, while drinks containing less than 6 grams are exempt.

Over the last 4-5 years, this measure has led to a notable decrease in sugary beverage production, with output of drinks containing more than 14 grams per liter plummeting from 819 million liters annually to just 16 million liters per year.

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