Car scheme a roaring success but some Thais unhappy

Car scheme a roaring success but some Thais unhappy – CNA, February 18, 2013
…They said that while the scheme gave the automotive and their related industries a short-term boost, it has long-term consequences.
Frost & Sullivan’s Thailand country manager, Monsinee Keeratikrainon, said: “In terms of the financial system, there’s increasing public debt. If you just look at the number of the car loans for last year, it grew about 42 per cent from the year before…(compared) with the household loan (which) grew only about 14 per cent from the year before. So there is a big jump in the number of (car) loans.”
But the revenue department said the benefits will come later down the road.
Its director-general, Somchai Pulsawas, said: “Overall, the government will benefit more from the car project than the rebates paid out. The benefits will be in the forms of indirect income tax, higher employment and related taxes and fees.”
But for now, the new cars are being blamed for the increasingly bad traffic in the capital Bangkok, where 7 million cars try to get through congested streets every day.
Many people also think the money could have been better spent elsewhere…

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