FTI calls on government to maintain 80% tariff on imported cars

By Thai PBS

 

 

The Federation of Thai Industries (FTI) yesterday called on the government to maintain tariff on imported cars at 80% to protect local auto industry.

 

The call was made by FTI’s local carmakers club chairman Mr Karnchit Chai-supho.

 

According to Mr Karnchit, local automakers wanted the government to maintain the 80% tariff on imported cars reasoning that any reduction will impact the local automotive and parts sector.

 

Full story: http://englishnews.thaipbs.or.th/fti-calls-government-maintain-80-tariff-imported-cars/

 

-- © Copyright Thai PBS 2018-06-26

Ridiculous......

Well in that case Thai products might get highly taxed in other countries as well.

 

Up to you.

13 minutes ago, Thian said:

Well in that case Thai products might get highly taxed in other countries as well.

 

Up to you.

I would go much, much  more than that.

I would get every Thai to report to uk consulate every 60 days, ( not 90 ) plus

all correct paper work,  in triplicate. just to be nasty , like they are.

and thats just for starters.

I would make sure they all feel like a guest  in my country of origin 

Edited June 26, 20188 yr by stanleycoin

11 minutes ago, stanleycoin said:

I would go much, much  more than that.

I would get every Thai to report to uk consulate every 60 days, ( not 90 ) plus

all correct paper work,  in triplicate. just to be nasty , like they are.

and thats just for starters.

I would make sure they all feel like a guest  in my country of origin 

 

Well......look for a decline in the sales of Bentleys in Thailand. ?

The import tax. How does Thailand get away with it? They enjoy growing exports to countries with low or zero tariffs yet here they tax most imports out of almost every sector of the market except hi-so.

Its not 80% for cars but alot more due to sales tax,sin/wealth  tax and combined uplift not to mention big engined luxury cars that have no competition in LOS.

Western countries have to haul Thailand into line or start imposing massive taxes on them.

 

Edited June 26, 20188 yr by lanista

I think 80% is a bit lower than the real figure especially if you want to bring your own car into Thailand which is closer to 200% + depending on what Custom duties are being charged .

thanks to the Japanese car makers in Chonburi et al all imports are super expensive so the roads are flooded with toyota, honda and mazda

Time to put some facts down;

- Import duties on cars is 80%. Other taxes like excise tax, interior tax and VAT will raise the tax burden considerably upon import, but these same taxes are also applicable to locally made cars.

- Most products imported into Thailand have a low import duty between 5% and 10%.

- Thailand does have high tariffs on certain luxury goods imported into Thailand. The reason is quite simple. Because there is such a large black economy and corruption, and most people hardly pay income tax, it's one of the few ways Thailand can tax high income residents who like to actually spend there untaxed or ill gotten gains on nice stuff to show off.  

40 minutes ago, Gulfsailor said:

Time to put some facts down;

- Import duties on cars is 80%. Other taxes like excise tax, interior tax and VAT will raise the tax burden considerably upon import, but these same taxes are also applicable to locally made cars.

- Most products imported into Thailand have a low import duty between 5% and 10%.

- Thailand does have high tariffs on certain luxury goods imported into Thailand. The reason is quite simple. Because there is such a large black economy and corruption, and most people hardly pay income tax, it's one of the few ways Thailand can tax high income residents who like to actually spend there untaxed or ill gotten gains on nice stuff to show off.  

but on this car import tax topic this is also to do with the japanese car manufactures; controlling the local market place and stiffling the competition who import. Its a win win situation for thai revenue and Japanese car companies its not a win for most other people

44 minutes ago, Gulfsailor said:

Time to put some facts down;

- Import duties on cars is 80%. Other taxes like excise tax, interior tax and VAT will raise the tax burden considerably upon import, but these same taxes are also applicable to locally made cars.

- Most products imported into Thailand have a low import duty between 5% and 10%.

- Thailand does have high tariffs on certain luxury goods imported into Thailand. The reason is quite simple. Because there is such a large black economy and corruption, and most people hardly pay income tax, it's one of the few ways Thailand can tax high income residents who like to actually spend there untaxed or ill gotten gains on nice stuff to show off.  

The more expensive these items are when legally sold, the greater the profits for those who find ways to get round the law and can supply high prestige at a cut price.

Cars, wines and spirits to get us started. Any more?  Luxury watches maybe?

Yes, and Australia should apply an 80% tariff on imports made in Thailand. 

Just means that the wealthy can buy good quality and safe vehicles.....while the poor drive pick-ups.

But....as very few here pay tax, it keeps the government ticking.....completely stupid economics.

When tariffs are evenly placed on Thai exports, the government will cry!

39 minutes ago, rosst said:

Yes, and Australia should apply an 80% tariff on imports made in Thailand. 

Why? Thailand charges 5% duty on cars made in Australia. Australia charges 5% duty in cars made in Thailand. Seems fair to me...

41 minutes ago, rosst said:

Yes, and Australia should apply an 80% tariff on imports made in Thailand. 

So should the US, EU, Canada and every other country.  Tax rice and shrimp at the highest Thai Tariff rate, and the Thai Tariffs would come down fast.

1 hour ago, Gulfsailor said:

Why? Thailand charges 5% duty on cars made in Australia. Australia charges 5% duty in cars made in Thailand. Seems fair to me...

Australia  still  makes   cars?

2 hours ago, humbug said:

but on this car import tax topic this is also to do with the japanese car manufactures; controlling the local market place and stiffling the competition who import. Its a win win situation for thai revenue and Japanese car companies its not a win for most other people

 

Of course. They can make good margins and still be very competitive against imported makes due to that huge tax tariff.

 

And because of the business rules here they will all have Thai partners. Now I wonder which strata of society they come from.

 

And yet Thais take advantage of low and no duties to export and open investment to buy property and businesses overseas. And they get away with it. Gotta hand it to them - they're very good at one sided deals!

1 hour ago, Gulfsailor said:

Why? Thailand charges 5% duty on cars made in Australia. Australia charges 5% duty in cars made in Thailand. Seems fair to me...

I don't think they make cars in Australia anymore.

5 hours ago, webfact said:

The Federation of Thai Industries (FTI) yesterday called on the government to maintain tariff on imported cars at 80% to protect local auto industry.

Protect them from what?

 

The Independent Car Importer and Distributor Association is asking for a tariff cut on finished cars from 80% to 40%. The association represents 60 Thai importing companies (aka SME's allegedly favored by the Prayut regime) serving clients that want models not generally available in Thailand.

Imported cars dropped to 5,000 during 2017 from prior years of 12,000 per year.

http://www.thaiauto.or.th/2012/news/news-detail.asp?news_id=4072

Compare the ICIDA 2017 import volume to domestic production of over 870,000 units.

https://www.marklines.com/en/statistics/flash_sales/salesfig_thailand_2017

The tariff is just pure economic xenophobia that injures Thai SME's while favoring the large domestic manufacturers such as Toyota, Honda, Isuzu, etc.

 

5 hours ago, Gulfsailor said:

Time to put some facts down;

- Import duties on cars is 80%. Other taxes like excise tax, interior tax and VAT will raise the tax burden considerably upon import, but these same taxes are also applicable to locally made cars.

- Most products imported into Thailand have a low import duty between 5% and 10%.

- Thailand does have high tariffs on certain luxury goods imported into Thailand. The reason is quite simple. Because there is such a large black economy and corruption, and most people hardly pay income tax, it's one of the few ways Thailand can tax high income residents who like to actually spend there untaxed or ill gotten gains on nice stuff to show off.  

Great post

The anti thai agenda mob dont like facts, thoughtful rationale and reasonableness though.

Thailand should really be on the receiving end of a trade war. Slap 500% on rice and auto parts for starters and see if they start to yield.

What has happened yo ASEAN and equal trade between countries. As always, Thailand does what suits them and complains when others do to them!

Australian car production ceased in October 2017. 

I am curious if you guys calling for reciprical trade terriffs would agree with Trumps trade stance concerning your countries of origin. Anybody care to state oppinion and country of origin?

With a lower tariff they'd probably sell more cars, and potentially collect more revenue (smaller tariff plus VAT) than before. And they'd discourage the illegal import methods.

 

The same is true for many high tariff items.

 

And people who could afford these items would probably spend the "saved" money on goods and services driving the economy and resulting in more VAT.

 

And tourists would want to come to Thailand for luxury shopping, maybe only give half back (3.5%) on luxury item VAT, 30,000 or more per item?

 

 

12 minutes ago, Tim207 said:

Trumps trade stance concerning your countries of origin

Trump's trade stance is somewhat flawed by being overly simplified, ie., export tariffs bad-import tariffs good; negative trade balance bad-positive trade balance good. That may work to get the vote of the least educated voter but it's impractical to nonsense from a commercial viewpoint.

 

In the 21st century a product may be produced by cooperative efforts of multiple global partners to achieve the lowest cost of production and the highest level of profit. Hence, a complex or large unitary product such as an auto, aircraft, agricultural machinery and computer represents a conglomeration of foreign parts. In some instances such as with autos, the manufacture of a major component may require multiple production cycles between the same nations.

 

For example the manufacture of a major auto component may require multiple cross-border transfers between two or more nations such as between the US and Mexico before final assembly. While there are few details on how Trump's import tariffs are applied (ie., against an imported unitary assembled product vs against imported work-in-process components), theoretically Trump's new tariffs might be applied not just once but multiple times against a finalized or fully assembled product. In the latter instance the product becomes unprofitable, export to the US ceases, and American industries and workers suffer.

A few people have advocated countries charging import duties on Thai made cars, who pays this?, the consumer, who gets the money, the government.

In Australia the car industry was protected by high import duties and since they were reduced the government was forced to give subsidies to manufacturers ( American/ Japanese ) so every buyer cost the taxpayers at least $A 2000 when buying an Australian assembled car, when the subsidies dried up manufacturing ceased.

I bought my first Nissan Maxima in 1990, cost $43,000 aust dollars, last one in 2012, cost $41,000, this was the result of the reduction of outrageous import taxes , I wonder if overall this was the right decision.

The biggest looser in a tariff war is the consumer, and I don’t think Mercedes or Bentley sales will be affected in Thailand.

20 hours ago, Dumbastheycome said:

Australia  still  makes   cars?

To my  knowledge  manufacturing  ceased  last  year. Totally.

1 hour ago, Dumbastheycome said:

To my  knowledge  manufacturing  ceased  last  year. Totally.

Think the Australian government is looking into a family car

to replace the de-funked Holden range of cars.

This is what they have earmarked as a suitable replacement for a Holden. 

Edited June 27, 20188 yr by stanleycoin

2 hours ago, stanleycoin said:

Think the Australian government is looking into a family car

to replace the de-funked Holden range of cars.

This is what they have earmarked as a suitable replacement for a Holden. 

Top  choice !   ?