The Thai Supreme Court Division for Tax Cases has upheld the Appeals Court order for Toyota Motors (Thailand) to pay about 10 billion baht in customs duties and fees for the import of parts for the assembly of Toyota Prius hybrid cars in Thailand between 2010 and 2012.

 

The court ruled that the parts, which were imported by Toyota Motors (Thailand) from Japan, were in a complete form which could be assembled into a car immediately and, therefore, were not eligible for 80% import duty and fee reductions.

 

Toyota Motors claimed that its imported spare parts were eligible, citing the Japan Thailand Economic Partnership Agreement (JTEPA).

 

Full story: https://www.thaipbsworld.com/toyota-motors-thailand-ordered-to-pay-฿10bn-in-outstanding-import-taxes-and-fees/

 

-- © Copyright Thai PBS 2022-09-16

 

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yeap...another motor company who will leave Thailand for it's stupid import taxes...Vietnam will welcome them! 5555

 

The court is making a major mistake.....clowns.

There of course will be a discount for less paperwork if you pay it into our Caymans account ????

Toyota unsurprisingly tried to cheat the Thai Revenue and Customs and got caught. They can’t afford to leave the Thai market as not too many people are buying Toyotas elsewhere.

Meanhwhile, popping sounds are being reported in the industrial zones of Vietnam.

 

12 minutes ago, Tiuangmoh said:

Toyota unsurprisingly tried to cheat the Thai Revenue and Customs and got caught. They can’t afford to leave the Thai market as not too many people are buying Toyotas elsewhere.

Yet, Toyota was the most popular car worldwide last year! 

3 hours ago, Joseph98765 said:

yeap...another motor company who will leave Thailand for it's stupid import taxes...Vietnam will welcome them! 5555

 

"Toyota Motors (Thailand) ... said that it will continue to do business in Thailand and will comply with Thai laws".

 

Why did you ignore that part of the OP?

45 minutes ago, petermik said:

The court is making a major mistake.....clowns.

What mistake is it making by confirming that import duty is due?

17 minutes ago, JonnyF said:

Meanhwhile, popping sounds are being reported in the industrial zones of Vietnam.

 

Why?

Just now, Liverpool Lou said:

Why?

Severe shortages of sparkling wine ????.

2 hours ago, Liverpool Lou said:

"Toyota Motors (Thailand) ... said that it will continue to do business in Thailand and will comply with Thai laws".

 

Why did you ignore that part of the OP?

Because he didn't read it is my guess.

37 minutes ago, LosLobo said:

Yet, Toyota was the most popular car worldwide last year! 

Until the wheels fall off, if you’ll pardon the pun ????

18 minutes ago, Tiuangmoh said:

50 minutes ago, LosLobo said:

Yet, Toyota was the most popular car worldwide last year! 

Until the wheels fall off, if you’ll pardon the pun ????

the wheels on the bus go round and round ? 

Toyota was citing the Japan Thailand Economic Partnership Agreement (JTEPA). And from what I have been told by informed sources, Toyota had a very strong case, and Thailand has essentially reneged on the agreement, to give Toyota this tax break. This is a major deal breaker. Expect Toyota and some of the 7,000 other Japanese firms operating here to start looking for greener pastures, governments they can count on, who practice the rule of law, and more dependable partners. This is a disastrous result for Thailand, and will likely ensure it's backwards trajectory for decades to come. 

 

And this disingenuous administration continues to claim they support alternative energy vehicles, when in reality their refusal to honor their promises has caused Toyota to stop all production of the Prius here. 

 

Woe are the people of Thailand, with this level of lack of leadership, integrity, judiciary, and compliance. 

 

Toyota Motors claimed that its imported spare parts were eligible, citing the Japan Thailand Economic Partnership Agreement (JTEPA). JTEPA is a free-trade agreement which the two countries signed in April 2007. One of its intended benefits was eventually to eliminate the tariffs on over 90% of their bilateral trade.

 

https://www.thaipbsworld.com/toyota-motors-thailand-ordered-to-pay-฿10bn-in-outstanding-import-taxes-and-fees/

 

The newspaper says Toyota insists all Prius parts are imported under the Japan-Thailand Economic Partnership Agreement, under which the parts at issue are subject to import duty of zero to 10% compared with zero to 80% for normal imports.

Toyota Thailand “reaffirms the company imports Prius parts using the correct declaration approved by the relevant government agencies,” the source says.

 

https://www.wardsauto.com/industry/toyota-thailand-suspends-prius-output-tax-tiff

Edited September 16, 20223 yr by spidermike007

2 hours ago, Liverpool Lou said:

"Toyota Motors (Thailand) ... said that it will continue to do business in Thailand and will comply with Thai laws".

 

Why did you ignore that part of the OP?

Because it is total PR. No doubt Toyota and countless other Japanese and international firms are looking at a way out, as we type. They needs partners they can count on, to keep their word on promises of tax relief, and other benefits, that were factored into the decision to manufacture here, and set up plants at great expense. 

Are the nitwits in charge of policy here once again too late to the party?

 

The vehicle tax measures include reducing import duty this year and next by as much as 40% for completely built EVs priced up to 2 million baht ($61,805), and by 20% for those priced between 2 million and 7 million baht.

 

The government will cut excise tax on imported EVs to 2% from 8%, which is expected to add 7,000 EVs in the first year, Finance minister Arkhom Termpittayapaisith told a news conference.

 

https://www.reuters.com/technology/thailand-approves-tax-breaks-evs-high-potential-foreigners-2022-02-22/

 

 

10 Billion Baht ..  that is roughly 290 million USD. 

Then the negotiation and adjustment follow and change to  X amount. 

Big deal for Toyota  ?   I don't think so. 

 

The locals whether public or private sectors always enjoy certain advantage. 

Toyota is not so novice thinking other places are different.

 

 

 

 

 

 

 

 

 

 

 

59 minutes ago, sscc said:

10 Billion Baht ..  that is roughly 290 million USD. 

Then the negotiation and adjustment follow and change to  X amount. 

Big deal for Toyota  ?   I don't think so. 

 

The locals whether public or private sectors always enjoy certain advantage. 

Toyota is not so novice thinking other places are different.

 

 

 

 

 

 

 

 

 

 

 

Incorrect. It is a large amount, even for Toyota. And the issue is whether or not the government here was being sincere, and fair, and kept their promises to a major manufacturing company. This could have heavy ramifications, if that is not the case. I tend to agree with Toyota on this one. Bullying, and a lack of fair play won't work out well in the long run for this administration, or a compromised judiciary. 

Edited September 16, 20223 yr by spidermike007

IMHO, Toyota did not enter Thailand without having all their ducks in a row. They're too big for that.

The Thais, as they do with we Farang, have jerked around with the "goal posts" now trying to screw the pooch.

Chevrolet had no problem packing up and moving out others could well follow.

I guess that is what you get when Generals, who could barely run an army, have their sticky fingers in a countries ecconomy.

24 minutes ago, bdenner said:

I guess that is what you get when Generals, who could barely run an army, have their sticky fingers in a countries ecconomy.

 

6 hours ago, webfact said:

for the import of parts for the assembly of Toyota Prius hybrid cars in Thailand between 2010 and 2012.

Remind me who was running Thailand 2010-2012, please.

    Way to shoot yourself in the foot, Thailand.  Terrible, short-sighted, flat-out dumb decision.  Learn to play the long game.   Is there nobody in charge with a working brain willing to step in and waive the penalty?   The goodwill garnered would be worth 10 times the fine, and also show other companies Thailand wants to work with companies doing business in Thailand, not gouge them.

22 hours ago, webfact said:

The Thai Supreme Court Division for Tax Cases has upheld the Appeals Court order for Toyota Motors (Thailand) to pay about 10 billion baht in customs duties and fees for the import of parts for the assembly of Toyota Prius hybrid cars in Thailand between 2010 and 2012

Rocking the boat might backfire.

22 hours ago, Tiuangmoh said:

Toyota unsurprisingly tried to cheat the Thai Revenue and Customs and got caught. They can’t afford to leave the Thai market as not too many people are buying Toyotas elsewhere.

   As others have said, number 1 in the World in 2021.  Neck and neck with VW for the title in 2022.  '...not too many people are buying Toyotas elsewhere.'  Maybe the dumbest forum statement ever--certainly my nominee for 2022.

23 hours ago, Joseph98765 said:

yeap...another motor company who will leave Thailand for it's stupid import taxes...Vietnam will welcome them! 5555

 

Another?? Who were the others? In the last few years new auto companies investing in Thailand include MG, GWM, BYD... which have left?

2 hours ago, newnative said:

    Way to shoot yourself in the foot, Thailand.  Terrible, short-sighted, flat-out dumb decision.  Learn to play the long game.   Is there nobody in charge with a working brain willing to step in and waive the penalty?   The goodwill garnered would be worth 10 times the fine, and also show other companies Thailand wants to work with companies doing business in Thailand, not gouge them.

So a company can cheat on import duties to the value of 10 billion baht and it should just be waived to show good will.  That would show the world that companies can come and work in Thailand and just do what they want because they will be let off.  Brilliant.

Have you read the detailed court verdict?  Have you read the cases of both sides?  Where do you get your information from that says this is the tax department being short sighted and dumb?  Or are you just saying that because it is Thailand and Thailand must be wrong?  Toyota have already said they will comply and pay up.  

I haven't read the detailed judgement or the detailed cases of either side.  I therefore am in no place to make a judgement.  And I am sure that is the case for every other poster here.  Yet you all jump to the same automatic conclusion that Thailand = wrong.

Toyota are going nowhere.... Lets also not forget that they self reported themselves on this case for trying to bribe judges.... which is currently being 'investigated' in the US so they might have another large fine coming up.... they even named the judges... but the Thai investigation seems to have stalled...

 

Lets not pretend Toyota are holier than thou themselves...

 

Vietnam is no better, its literally the land of moving goal posts when it comes to regulations....

17 minutes ago, smutcakes said:

Another?? Who were the others? In the last few years new auto companies investing in Thailand include MG, GWM, BYD... which have left?

Correct.

GM left but that had absolutely nothing to do with "stupid import taxes".  It had to do with GM's general demise in this region.  The Thai factory used to make Holdens but they killed that brand and also withdrew from many LHD markets.

And guess what, they didn't go to Vietnam!

You are trying to bring logic against what is just one more general, ignorant, automatic anti-Thai comment in this thread.  You may as well urinate into the wind.

5 minutes ago, josephbloggs said:

Correct.

GM left but that had absolutely nothing to do with "stupid import taxes".  It had to do with GM's general demise in this region.  The Thai factory used to make Holdens but they killed that brand and also withdrew from many LHD markets.

And guess what, they didn't go to Vietnam!

You are trying to bring logic against what is just one more general, ignorant, automatic anti-Thai comment in this thread.  You may as well urinate into the wind.

I dont even think GM 'left; they sold the business to GWM in the region, nothing to do with doing business in Thailand.... GM were the 1st large auto company to buy land in thailand to develop on the eastern seaboard and expanded multiple times.

 

Actually currently most industrial estate developers are going to report record land sales this year from inbound investment, and not just from China. They have not had land sales like this since 2011-2012 when the floods hit and many moved from  North BKK to the Eastern seaboard. I believe there is a genuine worry they are going to run out of Industrial estate land to sell.

 

The armchair experts on here is like amateur hour.... of course they have 'connections' and 'know people'.....

20 hours ago, spidermike007 said:

No doubt Toyota and countless other Japanese and international firms are looking at a way out, as we type.

No doubt?   What do you base that assertion on?