A taxing problem for Thailand’s car industry
Rebate scheme to stimulate economy boosted vehicle sales but also saturated market and encouraged bad debt.
Published On 5 Oct 2013
Thailand is big on cars, and has a huge car industry. But when businesses took heavy losses after disastrous floods two years ago, a scheme was created to stimulate the market: first-time buyers got a tax rebate worth as much as $3,200 when they bought a new vehicle.
Now there is a problem: about 10 percent of the people on the scheme are defaulting on loans and selling their cars.
Al Jazeera’s Veronica Pedrosa reports from Bangkok.
Source: Al Jazeera