Tax On Suvs

[xyz]

I've noticed that passenger vehicles are taxed at a much higher rate than pickup trucks. SUV is like a passenger vehicle on a truck frame. So, the question is, are SUVs considered trucks and taxed at a lower rate than, say, a 4-door sedan? What are the import tax rates on motor vehicles these days in Thailand?

[xyz]

you don't have to break the door down to answer this post....hello? ...anybody home? ...i know, this is way above your head, right?

[Nordlys]

I believe excise tax on SUV is same as passenger cars, 30 - 50% depending on the engine displacement. But lower 20% rate applies to any locally assembled pickup body/frame based SUV (like Toyota Fortuner). Excise tax on pick-up trucks is 5% (but not sure if same rate applies to all engine sizes).

Different rate of import duty for different category of cars but I believe most imported CBUs fall in 80% category.

[bkk_mike]

The lower tax rate on pickup-based SUVs has specific rules. (i.e. the vehicles must have 4 wheel drive).

However, I always hear rumours that the tax-break on them is about to be changed, but the price of the Fortuner / G-Wagon / Adventure Master seem to say it's still there for the time being.

(However, I also heard a rumour that the 65% import duty has to drop dramatically at some point in the next few years as part of Thailand's agreement with the WTO).

My guess is, whatever cars are made in Thailand will have a tax bracket that they fit into that imported cars oddly fail to hit. (i.e. 4 wheel drive pickup derivatives with an engine size between 2907cc and 2908cc!!!. It will no longer be import duty, but won't make imported cars any cheaper).

[Nordlys]

Import duty on cars assembled in other ASEAN countries are already reduced to 5% under ASEAN FTA agreement , and likewise the duty on cars to be imported from Australia under Thai - Australian FTA (are we going to see Holden in Thailand again?). Ongoing Japan - Thailand FTA negotiation might see a scrap of duty on all Japanese imports over 3,000cc (I heard EU is pressuring Thailand not to accept this as it will put the locally assembled European SKD/CKD as well as imports in a very weak position) and all other cars in 10 - 15 years time.

Although imported cars are subjected to excise tax just as any other locally assembled vehicles, scrap in import duty from 80% to zero or 80% to 5% will definitely lower the dealer sticker price.

[xyz]

It looks like the cost of Porsche Boxter is about three time more in LOS than in USA. See http://www.porsche.com How can that be??

Edited May 24, 2005 by xyz

[Digger]

I've noticed that passenger vehicles are taxed at a much higher rate than pickup trucks.  SUV is like a passenger vehicle on a truck frame. So, the question is, are SUVs considered trucks and taxed at a lower rate than, say, a 4-door sedan?  What are the import tax rates on motor vehicles these days in Thailand?

<{POST_SNAPBACK}>

Why worry about it - there is nothing you can do to change it - i'd suggest you just buy a car magazine here and look at the different list prices and make your choice as to what type of car/pickup you want and then go ahead and buy it. Trying to fathom out Thai pricing strategies will just do your head in.

Also you may notice that certain brands here are way more expensive than the costs of the various import taxes - again there is nothing you can do to change it so much as its wrong, compared to the USA for example, just accept it. Strange how people dont try and reason why the cost of a beer etc is way lower than back home and how can that be

[xyz]

Why worry about it - there is nothing you can do to change it - i'd suggest you just buy a car magazine here and look at the different list prices and make your choice as to what type of car/pickup you want and then go ahead and buy it.  Trying to fathom out Thai pricing strategies will just do your head in. 

Also you may notice that certain brands here are way more expensive than the costs of the various import taxes - again there is nothing you can do to change it so much as its wrong, compared to the USA for example, just accept it.  Strange how people dont try and reason why the cost of a beer etc is way lower than back home and how can that be 

<{POST_SNAPBACK}>

I'm definitely not worrying about it but don't YOU go worrying about what I MIGHT be worrying about

[Nordlys]

It looks like the cost of Porsche Boxter is about  three time more in LOS than in USA.  See http://www.porsche.com How can that be??

<{POST_SNAPBACK}>

I don't know what the import duty is on sports cars today but a few years ago I remember it used to be around maximum 325%. Whatever the rate it is today combined with 50% excise tax, it's not surprising Boxster costs triple as much as in US. I saw Honda dealer here selling light weight sports car S2000 and found the price at over B4 million to be almost four times as much as what it costs in Japan.

I remember reading a news in Bangkok post some 20 years ago a story of some wealthy Thai man importing 300ZX (Fairlady Z) from Japan by paying 600% import duty.

[bkk_mike]

(are we going to see Holden in Thailand again?).

<{POST_SNAPBACK}>

We already have Holdens here... - even though it's got a Chevrolet badge on it.

The Chevrolet Lumina is a rebadged Holden Commodore, built in Australia.

In fact most Chevrolets here seem to be rebadged versions of something else. The Optra is a rebadged Daewoo Nubira, and the Zafira came from Opel in Germany (although Thai-built Zafira's are sold in lots of places - just order an automatic Zafira with rear-aircon in Europe and your Opel or Vauxhall will come from the factory in Thailand).

Similarly, the Colorado pickup is a rebadged Isuzu D-Max, although in that case, the Isuzu is actually based on the proper Chevrolet pickup platform (from the US), so the Colorado seems to be the only "real" Chevrolet in Thailand.

The real difference is, the Lumina is the only one for sale in Thailand that's NOT built in Thailand. i.e. the FTA means importing from Oz is cost-effective.

[Nordlys]

The Chevrolet Lumina is a rebadged Holden Commodore, built in Australia.

In fact most Chevrolets here seem to be rebadged versions of something else. The Optra is a rebadged Daewoo Nubira, and the Zafira came from Opel in Germany (although Thai-built Zafira's are sold in lots of places - just order an automatic Zafira with rear-aircon in Europe and your Opel or Vauxhall will come from the factory in Thailand).

Similarly, the Colorado pickup is a rebadged Isuzu D-Max, although in that case, the Isuzu is actually based on the proper Chevrolet pickup platform (from the US), so the Colorado seems to be the only "real" Chevrolet in Thailand.

The real difference is, the Lumina is the only one for sale in Thailand that's NOT built in Thailand. i.e. the FTA means importing from Oz is cost-effective.

<{POST_SNAPBACK}>

Any idea how much this Lumina might cost in Thailand?

Why aren't we seeing any other Holden models here?

Is it no match to Japaense/European makes?

Yes, I know Zafra is a rebadged Opel (Astra?).

I believe Zafira from Rayong Plant are also shipped to Australia under Holden badge, and also as Subaru Traviq to Japan.

[bkk_mike]

Any idea how much this Lumina might cost in Thailand? 

Why aren't we seeing any other Holden models here? 

Is it no match to Japaense/European makes? 

Last I heard it was 1.89-1.99m baht depending on the model, which seems rather steep considering the Holden is a LOT less than that in Oz. Although, I did hear that the import duty on Oz cars hasn't gone all the way down yet. (When it does, will we be seeing personal imports of Monaros or Ute's (or company's doing imports of the cars that aren't officially sold here, like the Toyota Estima).

It might be worth checking the FTA to see when the import duty really drops. Then it might be interesting to import a Monaro. (Pontiac GTO - but with the Aussie engine, rather than a US one. Pontiac GTO is actually built in Oz and shipped to the US).

I wish it was easier to find the dates when Thai import duties have to change under agreements they've signed with other countries. I KNOW the 65% import duty on cars cannot continue for all that much longer in a country that's a member of the WTO. It's just a matter of when Thailand agreed with the WTO to reduce it... (although - as I say above, a reduction in import duty won't necessarily mean there isn't some corresponding change to the different tax levels on imported cars to make them equally expensive)

Yes, I know Zafra is a rebadged Opel (Astra?). 

I believe Zafira from Rayong Plant are also shipped to Australia under Holden badge, and also as Subaru Traviq to Japan.

<{POST_SNAPBACK}>

Yes - although it's an Opel Zafira too. The Astra is a small hatchback.

[bkk_mike]

I KNOW the 65% import duty on cars cannot continue for all that much longer in a country that's a member of the WTO.

<{POST_SNAPBACK}>

Oops - import duty is 80%.

For Goods vehicles, and large vehicles with engines > 3000cc, the FTA dropped it to 0% as of the 1st Jan. For other vehicles, it's still 30%, but will drop 6% a year until it reaches zero in 2010.

However, that's just the import duty, there is still the excise tax (which isn't cheap - i.e. over 100% on anything with over 220bhp OR an engine bigger than 3 litres (except 4WD SUVs ??))

There's also interior tax and VAT to apply, but since they apply to the price after import duty, they also get reduced quite significantly.

The Lumina has a 3.6L engine, so I think that means it gets the 0% import duty under the FTA, but is hit by over 100% excise tax. That explains a lot of the difference between the price in Oz and the price here. - i.e. 0% import duty still means 127% tax in Thailand. (but that's down from 308% before the FTA).

Tax rates on http://www.customs.go.th/Customs-Eng/Perso...PersonalPer#tax

[xyz]

I KNOW the 65% import duty on cars cannot continue for all that much longer in a country that's a member of the WTO.

<{POST_SNAPBACK}>

Oops - import duty is 80%.

For Goods vehicles, and large vehicles with engines > 3000cc, the FTA dropped it to 0% as of the 1st Jan. For other vehicles, it's still 30%, but will drop 6% a year until it reaches zero in 2010.

However, that's just the import duty, there is still the excise tax (which isn't cheap - i.e. over 100% on anything with over 220bhp OR an engine bigger than 3 litres (except 4WD SUVs ??))

There's also interior tax and VAT to apply, but since they apply to the price after import duty, they also get reduced quite significantly.

The Lumina has a 3.6L engine, so I think that means it gets the 0% import duty under the FTA, but is hit by over 100% excise tax. That explains a lot of the difference between the price in Oz and the price here. - i.e. 0% import duty still means 127% tax in Thailand. (but that's down from 308% before the FTA).

Tax rates on http://www.customs.go.th/Customs-Eng/Perso...PersonalPer#tax

<{POST_SNAPBACK}>

Well...I can forget about shipping a nice car from USA.

[bkk_mike]

Well...I can forget about shipping a nice car from USA.

<{POST_SNAPBACK}>

Not really - just wait until the FTA is signed. That should drop the import duty to 0 on anything with an engine over 3L (assuming it's the same as the Oz FTA)

You'd still have excise tax, which will be more than the cost of the car in the US, and the Interior tax and VAT to pay, but if you want a specific car, it can be done.

However, are you sure you want a car with the steering wheel on the wrong side. You can source a car from Oz (with the steering wheel on the right side) already, and they seem to share the American love of muscle cars. (given the current Pontiac GTO is a rebadged Holden, actually built in Australia).

[Nordlys]

Not really - just wait until the FTA is signed. That should drop the import duty to 0 on anything with an engine over 3L (assuming it's the same as the Oz FTA)

You'd still have excise tax, which will be more than the cost of the car in the US, and the Interior tax and VAT to pay, but if you want a specific car, it can be done.

<{POST_SNAPBACK}>

I thought the auto sector accord on FTA with OZ is to scrap the import duty completely (if not down to 5%). Otherwise Thailand has nothing to gain from the FTA since they don't make any cars with engines bigger than 3L (maybe except BMW 6 series?) and OZ has only Hoden Lumina to benefit from (unless they have whole bigger range of cars over 3.0L engines).

0% duty for over 3L engine cars is what the Japaense are asking for in the ongoing negotiation, in compromise to their original request of completely scrapping importy duty on all CBUs (and CDK parts) from Japan, which obviously isn't acceptable for Thailand as Japan has a whole wider range of cars to offer than Australia and Thai auto industry is no competition to the Japanese.

However, Thailand is likely to reward the Japanese in one way or another for the recent huge investment of shifting the entire 1 ton pick up truck production from Japan to Thailand and according to Bangkok Post motoring section of May 27, that might be duty cut on all imported CBUs from all countries to 40% from present 80% (and 0 - 5% on CKD parts), so that would be fair with Europeans and US counterparts.

However, are you sure you want a car with the steering wheel on the wrong side. You can source a car from Oz (with the steering wheel on the right side) already, and they seem to share the American love of muscle cars. (given the current Pontiac GTO is a rebadged Holden, actually built in Australia).

But how do you source the spare parts of cars that are not sold in Thailand?

[xyz]

Where I live (USA), tax is about 5%; so even after FTA, tax is too high, if it's gonna be 127%, as you say, for a muscle car.

[bkk_mike]

The Thai-Oz FTA...

Understand that Australian import duties were always lower than Thai ones, so Thailand is reducing their import duties by a lot more...

Current state is - Thai exports to Australia (regardless of engine size) now have 0% import duty.

Australian exports to Thailand will reduce to 0% for everything (import duty - so they'll be only hit with the same tax rates as Thai-built cars, which is still pretty high). However, initially (start of this year), it's only 0% on goods vehicles, and vehicles with engines bigger than 3.0L. Everything else still has 30% import duty, but that will reduce by 6% a year until it reaches 0%.

As for spare parts - engines, for instance, from Oz are reduced to, I think 20% import duty now, but again, that will drop to zero by 2010. However, spares can be ordered, and unlike the original vehicle, there is no excise tax on them. (For that reason, if you want to drive something that's not officially sold in Thailand, so long as you can find a place on the internet that's willing to DHL out the parts, you should be fine...)

i.e. Currently Australian cars have lower tax than anything else from outside ASEAN, engine under 3.0L, they've got the same import duty (30%) as the CKD kits that Volvo/BMW/Mercedes import and assemble locally. And for engines above 3.0L, they're taxed exactly the same as locally built cars (if Thailand built cars with engines over 3.0L).

The interesting thing is when the Japan-Thailand FTA is signed. If they get the same 0% tax on cars with engine > 3.0L, Japanese built Lexuses will undercut the Thai-assembled BMW and Mercedes kits... The Europeans will not be happy with that, but as the EU has declared that it's concentrating only on the DOHA round at the WTO, and not doing any bilateral free trade deals, they can't do anything about it except complain.

Don't expect Lexuses to drop to their price in the US/Japan/UK though. They'll still be subject to the regular 127% tax. But I definitely wouldn't buy an expensive Japanese car in Thailand right now, as the resale price will drop like a stone when the FTA is signed and new ones are 3m baht cheaper.

From an Australian point of view - what might be interesting is if the Holden Commodore Ute is classed as a 2-door pickup rather than a car for excise duty. (10% tax instead of 127% would make a lot of difference to how well it might sell here...)

Edited May 30, 2005 by bkk_mike

[xyz]

From an Australian point of view - what might be interesting is if the Holden Commodore Ute is classed as a 2-door pickup rather than a car for excise duty. (10% tax instead of 127% would make a lot of difference to how well it might sell here...)

<{POST_SNAPBACK}>

This one may be worth it http://www.hsv.com.au/cars/vz/main.asp?link=main/maloo.html