File photo for reference only

 

The Excise Department plans to update the recommended retail prices used to calculate excise taxes. Many current product prices are 5% to 10% lower than actual selling prices. A department source revealed that low recommended prices reduce government revenue.

 

The department collects 500 to 600 billion baht annually. Raising retail prices by 5% could increase government revenue by 20 to 30 billion baht. The review will focus on high-value items like cars, especially those from the grey market, which often have prices 5% to 15% below their true value.

 

In 2017, the department shifted the tax calculation basis from ex-factory or CIF prices to recommended retail prices, excluding VAT. If these prices don't reflect actual values, the director-general can set a new price for tax calculations based on sales or import prices, following ministerial regulations.

 

 

The department will use prices from major sales venues like modern trade stores as benchmarks to ensure market relevance. Recommended retail prices should include production costs, management expenses, and profit margins, and must not be below regular market consumer prices.

 

This change aims to prevent vendors from setting unrealistically low prices, which harm revenue. Recommended retail prices are seen as more accurate market indicators compared to ex-factory or CIF prices.

 

-- 2024-12-16

 

 

If they want more tax income they should start with sending everybody a tax form, as Thailand as no idea who is doing what and has how much income, and assets... For the low incomes there is no problem, but I strongly believe there is a whole group that has to pay at least a bit and many bits is a lot too

Removed an insulting post.

10 hours ago, snoop1130 said:

Raising retail prices by 5% could increase government revenue by 20 to 30 billion baht.

Thai economics.

Increasing inflation of consumer product costs for more government revenue. But that actually will reduce consumer purchasing power and thus demand for inflated cost of products. Retailer loses. Standard of living for consumer decreases. 

7 hours ago, ikke1959 said:

If they want more tax income they should start with sending everybody a tax form, as Thailand as no idea who is doing what and has how much income, and assets... For the low incomes there is no problem, but I strongly believe there is a whole group that has to pay at least a bit and many bits is a lot too

I have a Win taxi friend, earns cash only daily.

I asked him how much tax does he have to pay?

His reply: 7% every time I buy something.

In what might well be a world's first, the Thai taxman has been able to introduce two consumer taxes, both based on retail prices, albeit retail prices assessed using different criteria: one actual (7% VAT), and one calculated on a phantomlike "recommended" retail price (excise tax).

 

Couldn't the Thai taxman simply increase the VAT on goods subject to the excise tax? This approach would have probably been too transparent and didn't leave enough room for the revenue department officers to exercise their good judgment and sole discretion, and be graciously rewarded for them.

If they increase their prices they won’t be competitive anymore with the Chinese products and all to increase government profits. They really need more education about the economy and the people this affects. 

Seriously, I am wondering what kind of excellent weed is smoked by these clowns. 

The market decides retail pricing which - in many cases - is borderline competitive. The pandemic resulted in a very fast dying retail industry and increasing retail prices is perfect proof of not having the slightest idea of anything.

In true Thai fashion dropping revenues (and subsequent profits) is being fought with higher prices; i.e. make the same money with lesser volume and higher prices. Wondering which university is teaching this particular subject of guaranteed back-firing! 

22 hours ago, snoop1130 said:

Many current product prices are 5% to 10% lower than actual selling prices.

Raising retail prices by 5% could increase government revenue by 20 to 30 billion baht.

It could. It could also diminish sales which could decrease government revenue. Just sayin'...

raising the price, for the happiness of the people, right?

 

stop playing santa claus with tax payer's money