Automotive excise taxation: What reforms are needed to best utilise the ASEAN Economic Community?

Abstract

This paper draws attention to reforms which, if implemented, would utilise the opportunity represented by the ASEAN Economic Community (AEC) 2015 in, for example, the automobile industry in the ASEAN region. A range of policy areas are identified where coordination by ASEAN members would strengthen the region's position to become a leading global automobile producer. In addition to examining vehicle types and their relative CO 2 emission levels and fuel efficiency, examples of the types of excise tax that is applied in the European Union (EU), South Africa, Cyprus, and Thailand are used to highlight areas that could be addressed, leading to a series of reforms that would enhance the opportunity to achieve this global role. In conclusion, the paper brings together the policy issues discussed and provides a possible standardised automobile excise structure which policymakers could consider.