Millions Lost In Tax Revenue Over Imported Cars: Thailand

[cheshiremusicman]

"State is upset it cannot steal more from people using outrages tax-rates or that some are trying to avoid having someone steal from them."

That sums it up quite nicely! The car-import tax is way too high. It's just stealing from the people indeed.

I drove a MX5 in my home-country:

Price of a new MX5 in the USA: about 800-900 kbaht.

Price of a new MX5 in Holland: about 1.3 Mbaht (in Holland cars are considered quite expensive already)

Price of a new MX5 in Thailand: about 2.6 Mbaht (about double the Holland price and triple the USA price)

They do this for what? Protect people from not buying a local made car?

If they just lowered these taxes to half of they are now, much much more people will buy imported.

I think the government will even collect more revenue if they did this, since much more people will buy the car of their dreams.

A couple years ago I went to the BMW international website and searched what a new BMW 7 series with V8 costs in different countries and converted them all into US dollar. Here are the results:

USA - $86,000

Germany/Italy - $136,000

Holland - $170,000

Thailand - $425,000 !!

I did this when the exchange rate was 35 Baht to a US dollar and it is 30 now so now the 7 series would be about $484,000 USD

I also looked at the Thailand BMW site and found the 6 cyl. 7 series was 8.5 million Baht, V8 - 14.5 million and V12 - 18.5 million. So you pay and extra 6 million Baht to get the V8 instead of the 6 cyl. That's because of the horsepower tax Thailand has in addition to import tax.

I would to have a mini S but it's 3 times the USA cost so I had to settle for a Thai made Ford Fiesta S...handles real nice for a low prices car.

Some five and half years ago, when I was in the process of moving to Thailand from the UK, I tried to made enquires about importing a BMW 540i that I owned at the time. The car a V8 4.5 litre was 6 years old and had cost me some £17,000 when I had bought it secondhand. I eventually managed to work out a quote (nobody ever replied to my questions) for the 'import duty' of some £22,000 and this even though the car was 6 years old and thus was given some 60% dispensation for tax purposes. Needless to say I didn't import it. I have now been driving a Toyota Foretuner for some 5 years - different animal, but far more suited to Thai roads than my beloved BMW. Maybe, just maybe,as a previous poster has said the Thai authorities will learn and change the ridiculous import duties, but I doubt this very much. I wonder what the reaction would be if other countries placed a 250% import duty on Thai rice and other goods manufactured in this country - all hell would break loose.

[jonclark]

Anyone who buys one of these cars is not only rich, but stupid. Seriously A Merc, BMW,Aston Marin here costs three times what it would in the UK. You would have to be a serious jackass to waste your money in such a way.

Yes, BUT if you are living here you really have no choice when you like that kind of cars is it! It's either pay the high price or move to another country.

But IF you can afford an Aston Martin (not Marin, I think you are clearly not a car-lover:)), you can assure that you don't need to worry about a penny (or baht in this case) more or less. Even in any of your home-country ordinary people cannot afford an Aston Martin!

Apologies for the typo - Just cause I'm a crap typist doesn't mean i don't like cars. In the UK far more people can afford to buy an Aston ( a second hand one)

for example - 2005 Aston Martin DB9 V12 2005 = 40'000 GBP (1.93 Million - for the same money you can get top of the range Toyota Camry (2.5 HV navigator).

It's only the outrageous tax that takes cars like these out of the price range of the middle classes in Thailand.

If you think you have no choice but to pay the prices cause you like the cars, well that's your prerogative. Personally I think and Aston Martin in Bangkok is about as useful as an ashtray on a motorbike.

[soihok]

A few years ago i built a custom chopper, in Sydney (factory built) not backyard job, great looking machine, a year later i got my retirement visa to live in Thailand, i sent my belongings in 2 large crates to Thailand (first mistake) and then i tried to import my bike here as well, it is brand new, never ridden for displaying in custom bike and car shows, but i wanted to have it here in Thailand, went to the customs department in Bangkok, went through all the offices in all the floors, a young worker who spoke English translated the rules and regulations, ended up at Suvarnabhumi airport (import-export) offices next to the airport, i had a friend of mine do all this with me, he is a lawyer who speaks Thai and English very well,,, i built this chopper with all brand new parts for about $5000.00 AUD, it's what i do,,, after all the calculations were done by all the relevant departments, export from Australia,, import from Thailand,, 300% tax paid on the value calculated by the Thai customs department (note that) it was calculated that my Thai customs etc bill would be around $20,000.00 AUD, the bike is still in Sydney wrapped in cling wrap gathering dust,, People out there, read this and learn from us that have been there,, it's not worth it in any way form or manner, i was later told about the gray importers although i have decided not to persue the matter any further,,NOT WORTH IT AT ALL

Not nice to find out, I toyed with the idea of importing my old V-Max, but it just seemed to much bother.

No disrespect here Ozyjon, but I think you're probably better off without the trike.

[lifeincnx]

The real joke is what Thailand considers a luxury car. The Acura TL I had in the US is a LUXURY CAR here. The Madza 3 I bought here cost MORE than my US Acura - now that's luxury.

Wine is considered a luxury (thanks a lot Singha), common sense as well.

[chooka]

"State is upset it cannot steal more from people using outrages tax-rates or that some are trying to avoid having someone steal from them."

That sums it up quite nicely! The car-import tax is way too high. It's just stealing from the people indeed.

I drove a MX5 in my home-country:

Price of a new MX5 in the USA: about 800-900 kbaht.

Price of a new MX5 in Holland: about 1.3 Mbaht (in Holland cars are considered quite expensive already)

Price of a new MX5 in Thailand: about 2.6 Mbaht (about double the Holland price and triple the USA price)

They do this for what? Protect people from not buying a local made car?

If they just lowered these taxes to half of they are now, much much more people will buy imported.

I think the government will even collect more revenue if they did this, since much more people will buy the car of their dreams.

A couple years ago I went to the BMW international website and searched what a new BMW 7 series with V8 costs in different countries and converted them all into US dollar. Here are the results:

USA - $86,000

Germany/Italy - $136,000

Holland - $170,000

Thailand - $425,000 !!

I did this when the exchange rate was 35 Baht to a US dollar and it is 30 now so now the 7 series would be about $484,000 USD

I also looked at the Thailand BMW site and found the 6 cyl. 7 series was 8.5 million Baht, V8 - 14.5 million and V12 - 18.5 million. So you pay and extra 6 million Baht to get the V8 instead of the 6 cyl. That's because of the horsepower tax Thailand has in addition to import tax.

I would to have a mini S but it's 3 times the USA cost so I had to settle for a Thai made Ford Fiesta S...handles real nice for a low prices car.

Some five and half years ago, when I was in the process of moving to Thailand from the UK, I tried to made enquires about importing a BMW 540i that I owned at the time. The car a V8 4.5 litre was 6 years old and had cost me some £17,000 when I had bought it secondhand. I eventually managed to work out a quote (nobody ever replied to my questions) for the 'import duty' of some £22,000 and this even though the car was 6 years old and thus was given some 60% dispensation for tax purposes. Needless to say I didn't import it. I have now been driving a Toyota Foretuner for some 5 years - different animal, but far more suited to Thai roads than my beloved BMW. Maybe, just maybe,as a previous poster has said the Thai authorities will learn and change the ridiculous import duties, but I doubt this very much. I wonder what the reaction would be if other countries placed a 250% import duty on Thai rice and other goods manufactured in this country - all hell would break loose.

If others countries did place huge inport taxes on Thai products then thailand would go broke and thier economy would collapse, who would buy Thai rice? Thailand needs the world more than the world needs Thailand and without other countries looking after them they are doomed.

[Unkomoncents]

Thieves are loathe to be thieved themselves. Som nam na Thailand! And I completely agree with other posters: when I see someone driving a Mercedes in Thailand, my thoughts proceed as follows: 1) he/she can't afford it and, like many Thais, lives in a concrete box and spends the majority of income on face-gaining possessions others will see everyday, 2) he/she has a lot of money, 3) oh yeah, we're in Thailand, which means he/she spent more than three times what anyone else in the world pays for the same car (i.e. "You're a moron!").

[Thai at Heart]

On the basis that most people here evade income tax it goes some way to getting the richer part of society to pay something. 300k salary should generate about 1mn income tax but no one declares earnings like that. But a 3mn baht car and the govt generates more than 1mn in tax. Many ways to skin a cat u know

.

The 328% car tax breeds corruption. It inflates the cost of an average car to the price of a luxury car.

Supporting the local economy is great but the cars made here in Thailand are small & crappy little econoboxes. I'd like to have a Holden Monaro, Commodore SS or Ford Falcon which are not luxury cars back in Australia. They're left-side drive cars that is the closest to what I drive back in the US - Lincoln Town Car.

Not everyone wants a Vios, Altus or Camry. It would be nice to be able to locate your car at a parking lot as every car seems to be a Vios, Altus or Camry.

I understand that Thailand wants to protect their car manufacturing industry but a more sane tax would be about 7%. It cost a TON of money to have a car shipped from abroad so it's very few people that would go through the trouble of importing. They'd probably would get more revenue at a 7% tax.

Australian cars are right side drive the same as in Thailand and are driven on the left hand side of the road

[FOODLOVER]

Check out the Tatas, no import tax and if tweeked properly not so bad.

[3SoiDogNight]

The 328% car tax breeds corruption. It inflates the cost of an average car to the price of a luxury car.

Supporting the local economy is great but the cars made here in Thailand are small & crappy little econoboxes. I'd like to have a Holden Monaro, Commodore SS or Ford Falcon which are not luxury cars back in Australia. They're left-side drive cars that is the closest to what I drive back in the US - Lincoln Town Car.

Not everyone wants a Vios, Altus or Camry. It would be nice to be able to locate your car at a parking lot as every car seems to be a Vios, Altus or Camry.

I understand that Thailand wants to protect their car manufacturing industry but a more sane tax would be about 7%. It cost a TON of money to have a car shipped from abroad so it's very few people that would go through the trouble of importing. They'd probably would get more revenue at a 7% tax.

Australian cars are right side drive the same as in Thailand and are driven on the left hand side of the road

I know. That is what I meant.

It's confusing, "right-side drive" means the steering wheel is on the left-hand side.

My point being is that I want an American/Aussie style large V8, rear-drive sedan or coupe but with the correct side steering wheel for Thailand. That narrows my choices down to the Commodore, Monaro and Falcon.

I refuse to buy Mercedes or BMW here because I can get those back in the US and they are too common. Also, many of them are beat up. Many Thais don't maintain their cars well and given the fact that Mercedes & BMW are expensive to fix, buying a used one here would be a headache.

I do like the Toyota Crown Royal Saloon but it's just hard to accept paying 800,000 baht for a 12 year old Toyota, knowing that it's worth about 100,000 in other countries they were sold in.

[Markaew]

So what!

Billions are lost through corruption

Yes, the heart beat of this country.

[ralfbkk]

Anyone who buys one of these cars is not only rich, but stupid. Seriously A Merc, BMW,Aston Marin here costs three times what it would in the UK. You would have to be a serious jackass to waste your money in such a way.

I guess that makes me a real jackass then.

[dutchweller]

If the Powers that be "REALLY" wanted to look into this all they would need to do is go out to one of the Government parking lots and check how many of the MP, Police, Government officers owned BMW, Merc, Ect are Illegally imported.

But they wont.

What makes me laugh is the Corrupt Officials announcing they are cracking down on something everyone knows they are the worst culprits at.

TIT Do as I say not as I do..

[softgeorge]

The 328% car tax breeds corruption. It inflates the cost of an average car to the price of a luxury car.

Supporting the local economy is great but the cars made here in Thailand are small & crappy little econoboxes. I'd like to have a Holden Monaro, Commodore SS or Ford Falcon which are not luxury cars back in Australia. They're left-side drive cars that is the closest to what I drive back in the US - Lincoln Town Car.

Not everyone wants a Vios, Altus or Camry. It would be nice to be able to locate your car at a parking lot as every car seems to be a Vios, Altus or Camry.

I understand that Thailand wants to protect their car manufacturing industry but a more sane tax would be about 7%. It cost a TON of money to have a car shipped from abroad so it's very few people that would go through the trouble of importing. They'd probably would get more revenue at a 7% tax.

Australian cars are right side drive the same as in Thailand and are driven on the left hand side of the road

I know. That is what I meant.

It's confusing, "right-side drive" means the steering wheel is on the left-hand side.

My point being is that I want an American/Aussie style large V8, rear-drive sedan or coupe but with the correct side steering wheel for Thailand. That narrows my choices down to the Commodore, Monaro and Falcon.

I refuse to buy Mercedes or BMW here because I can get those back in the US and they are too common. Also, many of them are beat up. Many Thais don't maintain their cars well and given the fact that Mercedes & BMW are expensive to fix, buying a used one here would be a headache.

I do like the Toyota Crown Royal Saloon but it's just hard to accept paying 800,000 baht for a 12 year old Toyota, knowing that it's worth about 100,000 in other countries they were sold in.

I was going to bring over my 2007 Holden commodore worth around 20,000 AUD but it was going to cost me around 80,000 AUD to get it into the country with shipping costs and the taxes. They calculated the value of the car as a new one. I sold it and bought a new toyota here and saved about 50,000 AUD or about 1.6 mil baht enough to live off here for 10 years. It is simply a rip off and unreasonable.

[Cheops]

Anyone who buys one of these cars is not only rich, but stupid. Seriously A Merc, BMW,Aston Marin here costs three times what it would in the UK. You would have to be a serious jackass to waste your money in such a way.

Yes, BUT if you are living here you really have no choice when you like that kind of cars is it! It's either pay the high price or move to another country.

But IF you can afford an Aston Martin (not Marin, I think you are clearly not a car-lover:)), you can assure that you don't need to worry about a penny (or baht in this case) more or less. Even in any of your home-country ordinary people cannot afford an Aston Martin!

Apologies for the typo - Just cause I'm a crap typist doesn't mean i don't like cars. In the UK far more people can afford to buy an Aston ( a second hand one)

for example - 2005 Aston Martin DB9 V12 2005 = 40'000 GBP (1.93 Million - for the same money you can get top of the range Toyota Camry (2.5 HV navigator).

It's only the outrageous tax that takes cars like these out of the price range of the middle classes in Thailand.

If you think you have no choice but to pay the prices cause you like the cars, well that's your prerogative. Personally I think and Aston Martin in Bangkok is about as useful as an ashtray on a motorbike.

Hi jonclark,

no problem for the typo:) Wow, that's a quite interesting price for a 2nd hand Aiston Martin DB9 in the UK! Would love to see those prices here in Thailand. Also the 2nd hand carprices are outrageous here! I sold my old MX5 in Holland for about 150 kbaht and live here 7 years now and still the same building year of the MX5 will cost me here about 500 kbaht 2nd hand. That it's 20 year old car we are talking about then! Just insane. Actually if the 2nd prices were like in Holland or Germany I was looking for a nice 5 year old Boxter!

Yes, you are correct that an Aston Martin in BKK is not very usefull:) However I would love to buy a new MX5 for nice upcountry trips. Even an MX5 is not usefull in BKK (and now that I have 2 kids the MX5 is also not that usefull:)).

I drive a Fortuner already about 6 years now. Seems one of the best values for a car in Thailand and suitable for BKK (a bit more protection than a small car) and is even usefull with the floods. Oh, and the family fits in nicely as well:)

[Cheops]

Check out the Tatas, no import tax and if tweeked properly not so bad.

Tatas

My son tells me everyday he want a Tata, Tata, Tata. But he can't speak yet properly

No thank you. I think there will fit about 5 Tatas in the back of my Fortuner

With all these accidents in Thailand I would never even think about even hiring a Tata, let alone buy one!

[jaapfries]

Is there likely to be any detrimental 'fall-out' for people who purchased these cars from the so-called "Grey-Market-Dealers", i.o.w; is there any chance that the Gov. could confiscate these vehicles ? ? ?

[FOODLOVER]

Check out the Tatas, no import tax and if tweeked properly not so bad.

Tatas

My son tells me everyday he want a Tata, Tata, Tata. But he can't speak yet properly

No thank you. I think there will fit about 5 Tatas in the back of my Fortuner

With all these accidents in Thailand I would never even think about even hiring a Tata, let alone buy one!

Have you ever licked a Toyota? Not same.

[jaapfries]

The 328% car tax breeds corruption. It inflates the cost of an average car to the price of a luxury car.

Supporting the local economy is great but the cars made here in Thailand are small & crappy little econoboxes. I'd like to have a Holden Monaro, Commodore SS or Ford Falcon which are not luxury cars back in Australia. They're left-side drive cars that is the closest to what I drive back in the US - Lincoln Town Car.

Not everyone wants a Vios, Altus or Camry. It would be nice to be able to locate your car at a parking lot as every car seems to be a Vios, Altus or Camry.

I understand that Thailand wants to protect their car manufacturing industry but a more sane tax would be about 7%. It cost a TON of money to have a car shipped from abroad so it's very few people that would go through the trouble of importing. They'd probably would get more revenue at a 7% tax.

Australian cars are right side drive the same as in Thailand and are driven on the left hand side of the road

I know. That is what I meant.

It's confusing, "right-side drive" means the steering wheel is on the left-hand side.

My point being is that I want an American/Aussie style large V8, rear-drive sedan or coupe but with the correct side steering wheel for Thailand. That narrows my choices down to the Commodore, Monaro and Falcon.

I refuse to buy Mercedes or BMW here because I can get those back in the US and they are too common. Also, many of them are beat up. Many Thais don't maintain their cars well and given the fact that Mercedes & BMW are expensive to fix, buying a used one here would be a headache.

I do like the Toyota Crown Royal Saloon but it's just hard to accept paying 800,000 baht for a 12 year old Toyota, knowing that it's worth about 100,000 in other countries they were sold in.

I was going to bring over my 2007 Holden commodore worth around 20,000 AUD but it was going to cost me around 80,000 AUD to get it into the country with shipping costs and the taxes. They calculated the value of the car as a new one. I sold it and bought a new toyota here and saved about 50,000 AUD or about 1.6 mil baht enough to live off here for 10 years. It is simply a rip off and unreasonable.

Please explain to me how one could live in Thailand for 10 years, on 1.6 million Baht ? ? ? ? ? ? ? Amazing-Australian ! ! ! ! !

[jonclark]

Anyone who buys one of these cars is not only rich, but stupid. Seriously A Merc, BMW,Aston Marin here costs three times what it would in the UK. You would have to be a serious jackass to waste your money in such a way.

Yes, BUT if you are living here you really have no choice when you like that kind of cars is it! It's either pay the high price or move to another country.

But IF you can afford an Aston Martin (not Marin, I think you are clearly not a car-lover:)), you can assure that you don't need to worry about a penny (or baht in this case) more or less. Even in any of your home-country ordinary people cannot afford an Aston Martin!

Apologies for the typo - Just cause I'm a crap typist doesn't mean i don't like cars. In the UK far more people can afford to buy an Aston ( a second hand one)

for example - 2005 Aston Martin DB9 V12 2005 = 40'000 GBP (1.93 Million - for the same money you can get top of the range Toyota Camry (2.5 HV navigator).

It's only the outrageous tax that takes cars like these out of the price range of the middle classes in Thailand.

If you think you have no choice but to pay the prices cause you like the cars, well that's your prerogative. Personally I think and Aston Martin in Bangkok is about as useful as an ashtray on a motorbike.

Hi jonclark,

no problem for the typo:) Wow, that's a quite interesting price for a 2nd hand Aiston Martin DB9 in the UK! Would love to see those prices here in Thailand. Also the 2nd hand carprices are outrageous here! I sold my old MX5 in Holland for about 150 kbaht and live here 7 years now and still the same building year of the MX5 will cost me here about 500 kbaht 2nd hand. That it's 20 year old car we are talking about then! Just insane. Actually if the 2nd prices were like in Holland or Germany I was looking for a nice 5 year old Boxter!

Yes, you are correct that an Aston Martin in BKK is not very usefull:) However I would love to buy a new MX5 for nice upcountry trips. Even an MX5 is not usefull in BKK (and now that I have 2 kids the MX5 is also not that usefull:)).

I drive a Fortuner already about 6 years now. Seems one of the best values for a car in Thailand and suitable for BKK (a bit more protection than a small car) and is even usefull with the floods. Oh, and the family fits in nicely as well:)

Totally, the second hand car prices are just nuts - I'd love to invite the BBC Top Gear team out here for a consumer show. I'm sure they would be leave Thailand shaking their heads in numb disbelief ( or piss themselves laughing) at the price consumers pay for second hand cars. Depreciation just doesn't happen in Thailand!!!

[steelepulse]

Singapore and Norway also come to mind with cars having high taxes.

When I lived in Singapore and would be driving through one of the HDB towns, you'd be amazed at the number of S class Mercedes parked below one room run down studio shacks. Asian societies for the most part is about having big face (and showing what they are making payments on).

[gemini81]

The excise dept charges way too much based on the CC of the automobile (max 328%). This comes as no surprise. Actually, I wouldn't be surprised if much more grey market activities go on that is yet undetermined or reported. Who cares with such a raping amount of tax?

Put the car tax together with the average family's income....it's hard to afford running and maintaining a car, the payments and tax for most. I guess that's why lots here live in a hut or shed, yet have a set of wheels!

Edited March 16, 2012 by gemini81

[animatic]

Millions lost in ridiculously high paranoiac protectionist tarrafs

and tea money for the Import Duty officers and their masters.

[travelman6]

Well at a 187 to 328 % taxes, no wonder many people try to beat the out of control tax system and the only reason the government is pissed off is because they are loosing out on their take. If the government was not so corrupt, the whole country would be better off and these kinds of things would not be happening.

[bigbamboo]

Singapore and Norway also come to mind with cars having high taxes.

When I lived in Singapore and would be driving through one of the HDB towns, you'd be amazed at the number of S class Mercedes parked below one room run down studio shacks. Asian societies for the most part is about having big face (and showing what they are making payments on).

You see that in Thailand too... nice car outside a crappy house. Mind you, they are sometime farangs too stingy to buy a house!

Edited March 16, 2012 by bigbamboo

[Reasonableman]

Singapore and Norway also come to mind with cars having high taxes.

When I lived in Singapore and would be driving through one of the HDB towns, you'd be amazed at the number of S class Mercedes parked below one room run down studio shacks. Asian societies for the most part is about having big face (and showing what they are making payments on).

You see that in Thailand too... nice car outside a crappy house. Mind you, they are sometime farangs too stingy to buy a house!

Ho-hum....

[Cheops]

Please explain to me how one could live in Thailand for 10 years, on 1.6 million Baht ? ? ? ? ? ? ? Amazing-Australian ! ! ! ! !

Well, that's 160 kbaht per year, which is 13.3 kbaht per month, which is more than the average income for Thai people.

SO, why should he not be able to live 10 years with 1.6 MBaht?

(I have to admit, that I can't live 10 years in Thailand for that, but apparently millions of Thai can!)

[Cheops]

Singapore and Norway also come to mind with cars having high taxes.

When I lived in Singapore and would be driving through one of the HDB towns, you'd be amazed at the number of S class Mercedes parked below one room run down studio shacks. Asian societies for the most part is about having big face (and showing what they are making payments on).

You see that in Thailand too... nice car outside a crappy house. Mind you, they are sometime farangs too stingy to buy a house!

Because the houses in Thailand are mostly crappy:)

Are we too stingy to buy a house? Or is it that the Thai government doesn't want us farangs buy a house (which means somehow the ground under the house needs to have a owner as well).

[Cheops]

Check out the Tatas, no import tax and if tweeked properly not so bad.

Tatas

My son tells me everyday he want a Tata, Tata, Tata. But he can't speak yet properly

No thank you. I think there will fit about 5 Tatas in the back of my Fortuner

With all these accidents in Thailand I would never even think about even hiring a Tata, let alone buy one!

Have you ever licked a Toyota? Not same.

Licked a Toyota? Hmm, not that I can remember

Does a Tata taste different? I like your comments Foodlover:)

[madjbs]

If others countries did place huge inport taxes on Thai products then thailand would go broke and thier economy would collapse, who would buy Thai rice? Thailand needs the world more than the world needs Thailand and without other countries looking after them they are doomed.

You can say the same thing about any country, and about any of their primary industries.

And by the way, Thailand is the world's largest exporter of rice, so yes, the world does need Thailand's rice.

Edited March 16, 2012 by madjbs

[madjbs]

Maybe, just maybe,as a previous poster has said the Thai authorities will learn and change the ridiculous import duties, but I doubt this very much. I wonder what the reaction would be if other countries placed a 250% import duty on Thai rice and other goods manufactured in this country - all hell would break loose.

Sorry but that is a simply ridiculous comparison to make.

Edited March 16, 2012 by madjbs