Thai Overseas Students Abusing Rights: Tax Evasion

[Unkomoncents]

This is just hilarious. The incidentally wealthy (via corruption) are upset that they can't control free access to market prices...shocking? No, this is a country fundamentally unequipped to even begin to deal with the outside world. I will definitely enjoy justice when the 2014 ASEAN economic community comes into being...The unfortunate thing is that Thailand will likely become a human rights issue in the next decade.

[carlg1]

The saddest part about all this, is that if you ask an average Thai person what they think about the crazy import tax regime - a good number of them will be supportive of it. They will say something along the line of "but if rich people want to buy a Porsche, why not tax them to high heavens and then use the money for the greater good like building schools/roads etc". If you ask them what they think about the police going after people trying to avoid import tax, they will say "serves them right". I have spoken to a Thai professional who had economics major from Chula (and very good GPA) who said exactly this.

Ironically, anyone with the slightest knowledge of economics would know that this is not how things work in the real world.

The reality is that these super high taxes are a terrible thing for the local population. Local producers are content with making shoddy product because there is virtually no competition from importers. It forces Thai people to buy inferior goods. While it is understandable that protective tariffs are necessary in order to get the local industry going, I think we have reached a point where the Thai auto industry (the largest in ASEAN) can and should be able to look after itself by improving cost efficiency and product quality.

The second issue is that rich people are generally able to avoid import tax, or if they had to pay the tax, they can get it back somehow. In a place like Thailand, a few bribes and family connection can make custom officials turn their head the other way. Remember: rich people do not get rich by being stupid and spending money unnecessarily. Now If any Thais try to claim that the rich cannot get away with it - look no further than the title of this thread which says it all: OVERSEAS STUDENTS ABUSING RIGHTS. Who in Thailand sends their kids overseas? The rich. The evidence is right there, the Thais just refuse to see it for themselves. In the end, the middle and lower class - the ones who have been stooped into supporting this tax regime - are the ones who lose out. They just don't know it yet.

The next argument offered by the Thais - that high import tax is a good thing because it can be used to build roads, schools etc, is a complete fallacy. Anyone with the slightest knowledge of economics should know that high import tax reduces demand. And since the majority of the rich people that can afford these types of cars are probably buying them in the black market anyway, how much tax can the Thai government hope to generate? If the government really wants to maximize income tax, they need to cut back the tax rate to the level where smuggling would not make an economic sense. Lower tax means more affordable price, which translates to higher sale volume, which translates to higher over all income tax for the government. This isn't even economics - it's common sense.

The final argument: that high prices keeps poor people from buying luxury good and is therefore a good thing, demonstrates a somewhat sinister, elitist attitude that clearly wants to put the lower class people 'where they belong'. Imagine the shock to the Thai class system if some upcountry shop owner is driving around in a Porsche Boxster because he/she can buy it for a little over 1 million baht. Oh no! What will the rich people do now to show that they are still socially superior?!? Be wary of Thais who make this argument, as they are probably out trying to protect 'the old ways'.

So who then benefits from these ridiculous taxes? The local auto makers of course, and the politicians and government officials who gets paid off. The rich doesn't care, because they can get their luxury cars for cheap anyway - one way or another at least. Who gets screwed? Thai middle and lower class - who for some weird reason supports the regime that screws them over.

But until the majority of the Thais snap out of this pre-conditioning and start to think for themselves, they will be stuck in this situation for the foreseeable future....

[sparebox2]

The saddest part about all this, is that if you ask an average Thai person what they think about the crazy import tax regime - a good number of them will be supportive of it. They will say something along the line of "but if rich people want to buy a Porsche, why not tax them to high heavens and then use the money for the greater good like building schools/roads etc". If you ask them what they think about the police going after people trying to avoid import tax, they will say "serves them right". I have spoken to a Thai professional who had economics major from Chula (and very good GPA) who said exactly this.

Ironically, anyone with the slightest knowledge of economics would know that this is not how things work in the real world.

The reality is that these super high taxes are a terrible thing for the local population. Local producers are content with making shoddy product because there is virtually no competition from importers. It forces Thai people to buy inferior goods. While it is understandable that protective tariffs are necessary in order to get the local industry going, I think we have reached a point where the Thai auto industry (the largest in ASEAN) can and should be able to look after itself by improving cost efficiency and product quality.

The second issue is that rich people are generally able to avoid import tax, or if they had to pay the tax, they can get it back somehow. In a place like Thailand, a few bribes and family connection can make custom officials turn their head the other way. Remember: rich people do not get rich by being stupid and spending money unnecessarily. Now If any Thais try to claim that the rich cannot get away with it - look no further than the title of this thread which says it all: OVERSEAS STUDENTS ABUSING RIGHTS. Who in Thailand sends their kids overseas? The rich. The evidence is right there, the Thais just refuse to see it for themselves. In the end, the middle and lower class - the ones who have been stooped into supporting this tax regime - are the ones who lose out. They just don't know it yet.

The next argument offered by the Thais - that high import tax is a good thing because it can be used to build roads, schools etc, is a complete fallacy. Anyone with the slightest knowledge of economics should know that high import tax reduces demand. And since the majority of the rich people that can afford these types of cars are probably buying them in the black market anyway, how much tax can the Thai government hope to generate? If the government really wants to maximize income tax, they need to cut back the tax rate to the level where smuggling would not make an economic sense. Lower tax means more affordable price, which translates to higher sale volume, which translates to higher over all income tax for the government. This isn't even economics - it's common sense.

The final argument: that high prices keeps poor people from buying luxury good and is therefore a good thing, demonstrates a somewhat sinister, elitist attitude that clearly wants to put the lower class people 'where they belong'. Imagine the shock to the Thai class system if some upcountry shop owner is driving around in a Porsche Boxster because he/she can buy it for a little over 1 million baht. Oh no! What will the rich people do now to show that they are still socially superior?!? Be wary of Thais who make this argument, as they are probably out trying to protect 'the old ways'.

So who then benefits from these ridiculous taxes? The local auto makers of course, and the politicians and government officials who gets paid off. The rich doesn't care, because they can get their luxury cars for cheap anyway - one way or another at least. Who gets screwed? Thai middle and lower class - who for some weird reason supports the regime that screws them over.

But until the majority of the Thais snap out of this pre-conditioning and start to think for themselves, they will be stuck in this situation for the foreseeable future....

The rich should pay a lot more tax, because they can afford it. Like Thaksin, he should pay 10 billion in tax every year, and he still have spare.

The poor are already too poor to survive, please not make them pay any tax.

[sparebox2]

How many vehicles are they talking about? There almost certainly is a double standard being applied here for certain individuals.

Must be a few, In Chiangmai there are a lot of Merc's, BMW, Audi's and a few porches getting around. The c/park at my son's school is full of luxury vehicles, I feel embarrassed parking the toyota next to them.

They don't call it the Golden Triangle for nothing.

You should visit some international schools between 7 and 8 am. Harrow, ISB, Bangkok Pattana, Shrewsbury, etc. It is like a parade in a motor show.

[airconsult]

I wonder they try to protect what with 200% tax surcharge

They tax imported cars because they want to build up and protect the domestic auto industry. They've been very successful at it, it's the largest industry in the country now and 99% of cars sold here were built in Thailand and they export large numbers to other countries. If you're rich you can import and pay the +200% tax, normal people have to buy a car or truck made in Thailand.

So what you're saying is that a car produced in Thailand, with a low cost of production, cannot compete with a car produced in a country with a high cost of production (eg. Germany), unless there is a whopping big import tax as well????

Curious.......

[EvilDrSomkid]

I tell you one thing, I see a lot of new Audis on the websites here with MPH on the speedos. Gee, how'd that happen then?

200% tax or not, these cars are not exactly cheap as chips before the tax.

A legit Lambo goes for 26.5mil plus.

As for the OP, those 4 importers are just a bunch of whiners, because they are losing business to smarter guys. Boohoo.

Such children in this country...