Tax 'feebate' suggested for electric vehicles to cut smog

Tax 'feebate' suggested for electric vehicles to cut smog

Thailand would benefit from a tax "feebate" -- a system of charges and rebates -- for electric vehicles (EVs) as the kingdom attempts to curb air pollution from further damaging people's health and the economy.

Research from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), a German development agency, predicted the aggregate number of vehicles within all Asean member states would reach half a billion by 2030.

"From research we have done domestically, Thailand's in-stock vehicle registration is at a constant growth of at least 3-5% per year, which is concerning given no current infrastructure for EVs," said Gessarin Gunthawong, GIZ's national project coordinator for Thailand.

"In accordance with Thailand's commitment to the Intended Nationally Determined Contributions [INDCs], promises have been made to reduce national greenhouse gas emissions by 20-25% by 2030," Ms Gessarin added.

The INDC road map aims to reduce CO2 emissions by 41 tonnes, with 31 tonnes of that owing to new fuel-efficiency plans.

GIZ has made several recommendations to the Thai government, such as revising the current excise tax by applying a feebate scheme, which would scale the amount of tax car buyers pay in relation to how much carbon they emit.

Tax rebates are still possible under the scheme for zero-emission EVs. This would give car buyers incentives to opt for vehicles that cause little or no environmental damage.

Meanwhile, Bert Fabian of the UN Environment Program said that in 2017, 20% of all greenhouse gasses emitted as a result of human activity stem directly from the use of vehicles.

"With significant economic growth in the Asean region in particular, it is crucial for these governments to push forward policies that will promote the use of electric vehicles to mitigate air pollution, which jeopardises not only us, but future generations," Mr Fabian said.

Plans to improve eco stickers were also recommended. These make it mandatory for car manufacturers and retailers to show how much CO2 each vehicle produces while providing detailed information about the cost of ownership in terms of emissions.

Prime Minister Prayut Chan-ocha said in September 2015 that "Thailand intends to reduce greenhouse gas emissions by 20% from the BAU level by 2030".

It pledged in 2014 to lower C02 emissions by 7-20% by 2020.

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