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

[webfact]

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.

-- The Nation 2012-12-14

[kartman]

[dcutman]

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

[bigbamboo]

More cars = more traffic jams.

First law of automotion.

[Thai at Heart]

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?

[Felt 35]

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!

[zydeco]

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

[edwinchester]

Have to agree entirely with the op.

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

[DocN]

Who TF is writing this pile of bull?

[doctorproc156]

Public transport in Thailand is beyond abysmal.

[tig28]

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?"

[jaideeguy]

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!!

[MaxLee]

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

[tomyummer]

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.

[chooka]

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.

[cheeryble]

+1

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

?"

Actually if traffic is approaching the tipping point a very small percentage increase will make the difference between easy flow and no flow.

Not saying this is relevant to already-clogged Bangkok, but it IS relevant in somewhere like CM.

[slapout]

The traffic management is just following the lead of the rest of the non productive civil servents, Blame someone/something over which they have no control, for their lack of results, to a problem which they are there to solve.

The newspapers/reporters could have a form statement to fill in 3 blanks,

Who is being interviewed/position

What problem is being ignored

Where or at whom can the fickle finge of blame be pointed

[givenall]

Problems will go away in few month after many default on their loans

sent from-would like to know

[chooka]

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.

No you do not get 100K up front, you purchase a vehicle (1.5 lt & under) then you lodge all your documentation with the tax officer prior to the 31st Dec 2012. It can then take up to 12 months to get your 100K refund. My wife's niece and nephew both took advantage of scheme and then my wife considered it but she decided against the idea as she was afraid that if it takes 12 months for the refund the government may not still be in power or the government may run out of money. The scheme is only for 1st time car owners also but many people are buying the names of sons, daughters and cousins etc. For a lot of people it is impulse buying and you may find the 2nd hand car market flooded in 12 months when the finance companies and banks come knocking at the doors of those who failed to make repayments.

[MaxLee]

If that first car policy really took effect at the end of October this year,... be prepared for Christmas and New Year!!!!!!!!!! You know what I mean???

[rubl]

In the morning 15 minutes on the back of a motorcycle to BTS Victory Monument, zigzagging along. Only to practice the 'how many fit in a tin can' game. The fun of it all

[whybother]

Never fear. Thaksin will be back soon to fix the traffic problems in 6 months ... again.

[Robby nz]

Public transport in Thailand is beyond abysmal.

If that is what you think then I very much doubt that you use it.

Yes plenty of new cars about with red plates, I have time to see them when I sit on the bus.

[petedk]

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!!

Why do they need to build new roads? In 3 or 4 years there will be a high speed rail service and people will be selling their cars.

Sent from my GT-I9100 using Thaivisa Connect App

[HHBM]

You say scheme; I say scam.

[whybother]

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!!

Why do they need to build new roads? In 3 or 4 years there will be a high speed rail service and people will be selling their cars.

In addition to that, by the next election, the government have said that all 10 planned Bangkok train lines will be under construction.

[khunken]

Public transport in Thailand is beyond abysmal.

If that is what you think then I very much doubt that you use it.

Yes plenty of new cars about with red plates, I have time to see them when I sit on the bus.

Public transport is not abysmal in Bangkok. It's too many bloody cars that slow down the busses & vans - not forgetting the abysmal police traffic 'controllers'. There are boat 'busses' (ferries) on some of the klongs & the river plus the BTS & MRT.

The governments first house scheme was a good idea but the car scheme was an ill-thought-out populous give-away.

[zydeco]

Oh, heck, just lengthen the green lights by another 30 seconds. Worked last time, didn't it?

[planr]

The number of new cars on the road in Bangkok is very noticeable, particularly on Saturdays, however, since the number of registered vehicles in BKK was already growing by more than 7% / year (since 2004) prior to the new policy, it is no surprise that congestion continues to get worse.

[MaxLee]

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!!

Why do they need to build new roads? In 3 or 4 years there will be a high speed rail service and people will be selling their cars.

In addition to that, by the next election, the government have said that all 10 planned Bangkok train lines will be under construction.

More road closure and construction, but with a yearly increase in registered cars, get ready for the deadlock 2013,...