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Thai Govt's First-Car Tax Rebate Scheme Causing Traffic Jams

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POLITICS

1st-car scheme causing traffic jams

Suriyan Panyawai

The Nation

BANGKOK: -- The government's first-car tax rebate scheme has been a smashing success and a boon for the auto industry, but has helped spawn tremendous traffic snarls on Bangkok streets, traffic officials said.

"We found that people have to spend 30 minutes to an hour more on the road, especially in the main congestion areas such as Silom and Samsen, as many office buildings and schools are located there," Sujin Tayanukul, director of the Land Traffic Management Division, said yesterday.

Commuters might get stuck for at least four hours in both morning and evening rush hours, while the average car speed has dropped drastically both inbound and outbound, according to the Office of Transport and Traffic Policy and Planning.

As of October 31, car registrations in Bangkok had revved up to 7,384,934, of which 296,553 were for new cars bought under the first-car policy.

The populist scheme was opened on September 16, 2011 for people buying their first car and ends on December 31. The conditions limit vehicles to those made in Thailand, engines to 1,500cc and the price to Bt1 million.

The buyer has to own the vehicle for at least five years to receive an excise tax refund of up to Bt100,000, depending on the model.

The first-car scheme has given a big boost to the automobile industry, which suffered severely from last year's flood, with some assembly plants damaged, parts supply lines disrupted and output cut.

Pol Maj-General Piya Tawichai, commissioner of Traffic Police, said the congestion in the capital has been caused by several factors including the number of people travelling during rush hour, which now lasts for four hours from 6am-10am and again from 3pm-7pm.

"Everybody is heading downtown to work and to take their kids to school. This has caused terrible traffic in the main areas in the capital," he said.

There are also many construction projects that are now taking up lanes such as the Skytrain tracks and stations.

"We set up special traffic channels to drain traffic from streets," he said.

Wichian Jungrungreung, director-general of the Pollution Control Department, is one of the hundreds of thousands of traffic victims in Bangkok. He has to wake up at 5.40am and leave home very early to avoid the traffic jams.

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-- The Nation 2012-12-14

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Another wonderful, well thought out populous plan. Thank God they did not use this money to improve mass transit.

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We found that people have to spend 30 minutes to an hour more on the road, especially in the main congestion areas such as Silom and Samsen, as many office buildings and schools are located there,"

only 30minutes?.

they only just discovered this?

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This scheme is based on two thing, one enriching a specific group and in this case the Thai based auto suppliers and two get Thailand higher up on the list over world ranking auto manufacturers.

Will be interesting to see how a disturbed market will react to this scheme the next 5 years!

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Wait a minute! I thought it was all the fried banana sellers who were causing the increase in traffic jams.

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Have to agree entirely with the op.

There were absolutely no traffic jams in Bangkok before the subsidy was intruduced.

+1

Without the slightest doubt this gigantic 4% increase in vehicles on the road is the cause of all of the new traffic mayhem.

To quote DocN: "Who TF is writing this pile of bull?"

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Up here in CM, there is a significant increase in traffic and lots of new vehicles with no plates yet. There is a thread on the CM forum that confirms that, and it's not over yet, as it was so popular that lots of vehicles are sold out and have heard that the buyers have to wait until 2014 to get their vehicles. Meanwhile no new construction or widening of roads is noticed.

The most obvious trait about these first time owners is that they drive like 1st time drivers.....argaaaah!!

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w00t.gifw00t.gifw00t.gifw00t.gif Whaaaat.... you mean it is already starting???? Wasn't it supposed to be next year??????? cheesy.gifcheesy.gifcheesy.gifcheesy.gifcheesy.gifcheesy.gifcheesy.gifcheesy.gif I must have missed something then...

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I heard you get the 100k realized up front, but if you sell prior to the five year period, you have to pay the 100k back. I really want to see how this one will work. Probably split the cost with the new buyer?

Typical of the Thai government. Do first, think later.

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Wait a minute! I thought it was all the fried banana sellers who were causing the increase in traffic jams.

and those selling alcohol from roadside stalls.

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BANGKOK 23 May 2018 13:55
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