Information For Both Expats And Thais

[oldgeezer]

I just completed an internet search on various goods, comparing Thai prices with those on Amazon.com. For those interested and may not already know, nearly all of the items priced were at least double those found in Thailand. Comparisons were made on dozens of goods, from automobiles to chair casters.

One cannot compare quality, but most of the goods researched come from the far east, and not the U.S. so one would think shipping was not the issue.

Examples:

Toyota Camry hybrid, 1.8 million baht ($60,000) in Thailand, $30,000 in U.S., plus or minus depending upon options. Chair casters appear to be the same model, $55 in Thailand $24 in U.S. Imported foodstuffs seem to be three times that of U.S. as imported from there.

Does anyone else have info that may account for these differences?

Thanks for the time reading.

[newbie001]

Two simple words: Import tax.

Some luxury cars are taxed more than 50% of their value.

Almost all appliances that are not made in Thailand are a fortune. Ovens, dishwashers and the like are some times 5 times the cost

Gasoline is more expensive,

[Jebhead]

Import duties for the kingdom

JH

[kuffki]

Two simple words: Import tax.

Some luxury cars are taxed more than 50% of their value.

Almost all appliances that are not made in Thailand are a fortune. Ovens, dishwashers and the like are some times 5 times the cost

Gasoline is more expensive,

True but only partially.

Toyota is made in Thailand, yet it cost more then in US or Oz

Furniture made in Thailand cost double if not triple to the one imported from China

Locally made clothing is double to Chinese imports.

[planr]

It's actually excise tax, local tax, and VAT for domestic stuff while tacking on import duties for foreign stuff.

For the example of the Toyota Camry, if the total price ends up at 1.8 million baht, that includes 30% excise tax plus 10% for the local tax, then 7% on VAT, all applied to the "original" price... so the "pre-tax" price is probably somewhere between 1.2-1.3 million baht, which is not at all unreasonable. If a new vehicle is imported, there is an additional 80% import duty.

[Boater]

take second hand cars as an example

Porshe boxter in the uk 2002 model - 8-10 K GBP - 500 K THB - in thailand same car 3 Million THB ...........

[kokesaat]

Yakking with a visiting friend from the US about vehicle prices in Thailand a few days ago. He asked about taxes. I told him that based on my understanding the taxes are 7% VAT for all vehicles, plus an additional 3% excise tax for spacecab trucks, an additional 12% for double cab trucks, 20% for a pickup pax vehicle like a Pajero/Fortuna, 30% for a 1.5liter Jazz, and a whopping 35% for a car like a Camry with a 2.0 liter engine. The excise tax schedule was extracted from p.17 of

http://www.ryutu.inpit.go.jp/seminar_a/ ... /C4-01.pdf

Over a beer or two we whipped up an excel sheet to show the total amount of taxes paid on the above vehicles. I shudder at the thought that a Camry buyer is paying $12,000 in taxes in Thailand.......but at a (Toyota website) purchase price of 1,224,000 (includes all taxes), a 7% VAT and 35% excise tax, $12,000 of that (or 361,778 Baht) is taxes.

The "Price shown at dealer" was based on latest prices on the Toyota/Thailand website. That may differ from what anyone has actually paid.

We included a separate column to show what the same vehicle would cost based on a 8.25% tax rate (that's the sales tax rate in Texas). According to our figures, you'd pay $2371 in taxes on that Thai Camry in Texas but $12,059 in taxes in Thailand.

I couldn't upload the excel file, but a photo of the file is attached. If anyone can poke holes in the figures, I'd appreciate the feedback.

[Darrel]

Europe has very high import duty and VAT (VAT there is normally nearly 3 times what it is here). Also incredibly high wages and social security charges. Prices there are still often much lower than prices in Thailand.

A simple example:

PC speakers ordered online and delivered within 48 hours in the UK: GBP9 (450B) incl delivery. 12 months warranty.

The same speakers on the shelf in a large electrical store here: 550B. No delivery and no real warranty for that matter.

No, many prices are just plain high here and the cash must be going somewhere. I wonder where?

It isnt reasonable to compare the prices of used goods though as obviously the market is very different.

[oldgeezer]

Thanks to all for your input. This came up mainly due to a discussion with our Thai neighbors when they revealed their belief that everything in America was very expensive. They were surprised to find out that with the exception of fruit and veggies from the far east, the U.S. was cheaper. And with food prices going up here, that may not continue. Not sure they believe it even now.

[theseahorse]

Europe has very high import duty and VAT (VAT there is normally nearly 3 times what it is here). Also incredibly high wages and social security charges. Prices there are still often much lower than prices in Thailand.

A simple example:

PC speakers ordered online and delivered within 48 hours in the UK: GBP9 (450B) incl delivery. 12 months warranty.

The same speakers on the shelf in a large electrical store here: 550B. No delivery and no real warranty for that matter.

No, many prices are just plain high here and the cash must be going somewhere. I wonder where?

It isnt reasonable to compare the prices of used goods though as obviously the market is very different.

The thing you're forgetting here is how much the GBP and the USD has dropped over the past few years. Before the economic crash we were getting about 70 baht to the GBP, making your speakers only about 7 GBP. You can't expect a Thai shop keeper to drop the price of his speakers because another countries currancy isn't doing to well.

Obviously, for tourists and anyone living here who earns their money abroad, it does make a big difference, but for anyone living and earning money in Thailand it makes no difference.

Saying this, the cost of cars, new and secondhand here is so high and always has been compared to back west. What I really don't understand is how taxis are so cheap, when the initial outlay to get a car is so high!

[Darrel]

The thing you're forgetting here is how much the GBP and the USD has dropped over the past few years. Before the economic crash we were getting about 70 baht to the GBP, making your speakers only about 7 GBP. You can't expect a Thai shop keeper to drop the price of his speakers because another countries currancy isn't doing to well.

Obviously, for tourists and anyone living here who earns their money abroad, it does make a big difference, but for anyone living and earning money in Thailand it makes no difference.

I'm not forgetting it at all. Most such items are made in China (or Thailand!) anyway and so the exchange rate is factored into the price. Besides which the Thai shopkeepers costs are hugely lower than those in the UK.

Saying this, the cost of cars, new and secondhand here is so high and always has been compared to back west. What I really don't understand is how taxis are so cheap, when the initial outlay to get a car is so high!

Taxis and bahtbuses are cheap here because labour costs and fuel/maintenance/road tax/insurance are much, much lower than they are in Europe. Also the expectation of the taxi owner if he is self-employed. S/E drivers in the West probably earn well in excess of 50,000GBP per year. I doubt many bahtbus drivers in Pattaya do the same (though they dont do too badly either).

Secondhand cars retain their value here better because people are more inclined to buy new in the West, if they can get the credit. Whereas here there are many people who know they cant afford to buy new and would never look beyond used. That is simple.

[Pib]

Primarily Taxes...taxes that occur before the final VAT is applied. And for some foreign products, Taxes, Transportation, and Mark-up...the Mark-up is associated with those countries which usually have a quality/technology reputation associated with them. Some items in Thailand just cost a lot more than in other countries (and vice versa).

[kuffki]

Primarily Taxes...taxes that occur before the final VAT is applied. And for some foreign products, Taxes, Transportation, and Mark-up...the Mark-up is associated with those countries which usually have a quality/technology reputation associated with them. Some items in Thailand just cost a lot more than in other countries (and vice versa).

I do not think its only taxes, i also think its mark up and demand. What i mean is say for example in Oz, people have a choice to buy from retail stores, online stores, ebay sellers local and international and international stores with no duty taxes if purchase under $1000.

In Thailand anything coming from another country gets taxed. I had purchased shoes before from USA and they attached official invoice that shoes cost $2, i was charged 1400 baht tax.

One of my customers returned broken product for repairs, customs could see it was broken(all in small pieces) yet they still charged 900 baht tax.

Say Iphone screen protector in US or OZ cost 100 baht for 6 pieces, while in Thailand its 150 for 1.

If i buy and have it posted to Thailand, they will tax it 800 baht(as it seems its the minimum tax they always apply)

so to make my point, local retailers, can wack any price they wish and consumers have no choice but to pay, because there is no alternatives.

[thrilled]

it's really weird with the taxes and vat that thailand has.I'm surprised the average thai can buy anything.

[Darrel]

it's really weird with the taxes and vat that thailand has.I'm surprised the average thai can buy anything.

Hmm. Try Europe.

[selftaopath]

Thanks to all for your input. This came up mainly due to a discussion with our Thai neighbors when they revealed their belief that everything in America was very expensive. They were surprised to find out that with the exception of fruit and veggies from the far east, the U.S. was cheaper. And with food prices going up here, that may not continue. Not sure they believe it even now.

Thank you all for your input. I find it appalling that prices are so high here especially for automobiles. No wonder the typical Thai family can not afford a 4 wheel vehicle and pile as many bodies they can onto their 2 wheel one. These stats reinforce my feeling that the typical "Thai way" of doing business is to SUCK as much out of the customer as possible, and reeks of pure GREED. Will this apparent strangle hold on consumers ever end?

[powderpuff]

What I really don't understand is how taxis are so cheap, when the initial outlay to get a car is so high!

Because the government sets the price of a taxi ride.

Just like it sets the price for sugar, cooking oil, rice, diesel, fish sauce & a whole host of products.

Most or all of Bangkok Taxi's run on liquid petroleum gas. The price of which is .... you guessed it ... set by the government (at way below market price) in essence LPG is subsidized.

[selftaopath]

Two simple words: Import tax.

Some luxury cars are taxed more than 50% of their value.

Almost all appliances that are not made in Thailand are a fortune. Ovens, dishwashers and the like are some times 5 times the cost

Gasoline is more expensive,

True but only partially.

Toyota is made in Thailand, yet it cost more then in US or Oz

Furniture made in Thailand cost double if not triple to the one imported from China

Locally made clothing is double to Chinese imports.

I just recalled the shock I had when I priced a Triumph Mc in BKK. It was CRAZY high. But I wonder what the tax is for these little 125 cc Honda put puts that most Thai people cruz around in? Anyone know? Is there a big difference in "gouging" b/t cars and motorbikes?

[ericthai]

Two simple words: Import tax.

Some luxury cars are taxed more than 50% of their value.

Almost all appliances that are not made in Thailand are a fortune. Ovens, dishwashers and the like are some times 5 times the cost

Gasoline is more expensive,

True but only partially.

Toyota is made in Thailand, yet it cost more then in US or Oz

Furniture made in Thailand cost double if not triple to the one imported from China

Locally made clothing is double to Chinese imports.

I just recalled the shock I had when I priced a Triumph Mc in BKK. It was CRAZY high. But I wonder what the tax is for these little 125 cc Honda put puts that most Thai people cruz around in? Anyone know? Is there a big difference in "gouging" b/t cars and motorbikes?

Yes, on both car and bikes is taxed by the size of the motor, the bigger the motor the higher the tax. I believe with a car if you are under 2.4L it's the standard tax rate, anything going higher than this then the taxes increases. like th one guy pointed out about the porsche, the price as 3 million in Thailand. Taxes on cars can be as high as 300%. Rent is still less here in Thailand than in the US. Movies are cheaper, yes some stuff I like from the US (such as cheese) is very expensive, but coke it cheaper here.

Also as someone pointed out the exchange rate, but i don't think you can really factor that as back before 1997 the exchange rate to the US was on 25B to the dollar, we just all got spoiled after the 1997 crash. It was amazing though how some things you know did not go up in cost (such as bar fines 200B) gradually started to increase, you know there was no price increase in the raw product cost. i do recall thinking back in the early 90's that Thailand was not all that cheap, food seamed to he high, ahh massage was only 150 for 3hrs. Anyway I still think Thailand is less expensive, depends on what you are buying, you want to live as in the Us and have imported foods then the cost is high, you eat local beef pork not bad. Cars well nothing you can do. I know I cant get a maid in the USA for only 200 a month.

Edited March 14, 2011 by ericthai

[planr]

Two simple words: Import tax.

Some luxury cars are taxed more than 50% of their value.

Almost all appliances that are not made in Thailand are a fortune. Ovens, dishwashers and the like are some times 5 times the cost

Gasoline is more expensive,

True but only partially.

Toyota is made in Thailand, yet it cost more then in US or Oz

Furniture made in Thailand cost double if not triple to the one imported from China

Locally made clothing is double to Chinese imports.

I just recalled the shock I had when I priced a Triumph Mc in BKK. It was CRAZY high. But I wonder what the tax is for these little 125 cc Honda put puts that most Thai people cruz around in? Anyone know? Is there a big difference in "gouging" b/t cars and motorbikes?

Yes, on both car and bikes is taxed by the size of the motor, the bigger the motor the higher the tax. I believe with a car if you are under 2.4L it's the standard tax rate, anything going higher than this then the taxes increases. like th one guy pointed out about the porsche, the price as 3 million in Thailand. Taxes on cars can be as high as 300%.

Not exactly. Excise tax on cars and trucks does vary by the size of the engine (cubic centimeters) and/or the horsepower. With domestically produced motorcycles like Honda stuff, the excise tax is 3% for those with four-stroke engines and 5% for those with two-stroke engines. And then add the obligatory 10% municipal tax and 7% VAT.

[12DrinkMore]

True but only partially.

Toyota is made in Thailand, yet it cost more then in US or Oz

Furniture made in Thailand cost double if not triple to the one imported from China

Locally made clothing is double to Chinese imports.

I just recalled the shock I had when I priced a Triumph Mc in BKK. It was CRAZY high. But I wonder what the tax is for these little 125 cc Honda put puts that most Thai people cruz around in? Anyone know? Is there a big difference in "gouging" b/t cars and motorbikes?

Yes, on both car and bikes is taxed by the size of the motor, the bigger the motor the higher the tax. I believe with a car if you are under 2.4L it's the standard tax rate, anything going higher than this then the taxes increases. like th one guy pointed out about the porsche, the price as 3 million in Thailand. Taxes on cars can be as high as 300%.

Not exactly. Excise tax on cars and trucks does vary by the size of the engine (cubic centimeters) and/or the horsepower. With domestically produced motorcycles like Honda stuff, the excise tax is 3% for those with four-stroke engines and 5% for those with two-stroke engines. And then add the obligatory 10% municipal tax and 7% VAT.

Should have bought a Kawasaki

http://www.kawasakib...tlineup_09.html

built in Thailand and sold at pretty much the same price here as in Farangland.

Pity that Triumph, also manufactured in Thailand, can't pull the same deal......

[oldgeezer]

After getting a very minor ding in the back bumper of my 1992 Mercedes, I was reminded that even though cars are expensive here, insurance for an older car and repair parts and labor are extremely cheap. While insurance paid for repainting back bumper, I had front bumper restored. My cost 1000 baht. I bought the car 4 years ago from a good friend mainly because it was pristine inside and out. We've spent the last four years completely going through the mechanical, tires and computer systems. Looking through the bills, I must say it was amazingly cheap, and the work was first class. I now have the most immaculate 300E in Thailand, and all on a beer budget.