The Thai cabinet announced today that it has removed duties on cars and parts imported by automakers which were severely hit by the country’s worst flooding in more than half a century in bit to spur the auto market.

Industry minister Dr. Wannarat Channukul said tax exemption will cover all completely built vehicles, parts and machines and give to automakers located in the declared disaster areas. The exemption period will cover from October 25, 2011 to June 30, 2012.

“Those factories which import completely built vehicles, its suppliers and part makers which supply chain was disrupted during the flooding are eligible to receive this tax exemption privilege,” he said.

However, the minister said plants that are eligible to receive tax exemption must be part or auto makers that make an identical vehicle or parts currently marketing in Thailand.

Dr. Wannarat added that the government may revoke this privilege at anytime; given it deemed that the automakers are recovered faster than expected.