Millions Lost In Tax Revenue Over Imported Cars: Thailand

[Naam]

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!").

but a moron with money!

[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!

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).

Alright, Cheops......... pay for a house then!

Edited March 16, 2012 by bigbamboo

[thailand49]

Whatever happen to globolization?

[Tanaka]

CLS-Class Coupé (Merc)

CLS 350 BlueEFFICIENCY

Manufacturer's List Price

including GST $139,855.00

Recommended maximum dealer delivery¹

including GST $2,692.31

Luxury Car Tax (LCT) $25,524.39

VIC Total Registration² $713.20

VIC Registration $263.30

VIC CTP² $0.00

VIC Stamp Duty $8,410.00

Drive Away Price

Base model featured only. $177,194.90 (5,670,236 Bht)

(Based on Victoria, Australia prices which vary from state to state depending on local gov stamp duty taxes)

A nieghbour of ours has one of these that his daughter used when studying in Melbourne Australia he then imported the vehicle.

So assuming that he paid the tax at say the 328% (example only) the vehicle in the end would have cost him $581,282 (AUD) or 18,598,282 Baht.

I see a lot of luxury imported vehicles driving around Chiangmai and the carpark at our son's school is a motoring buffs Disneyland. How on earth can Thai's (A "3rd World" country) afford such luxury items.

We hear stories of corporations like Toyota and the like considering relocating to nieghbouring countries due to the increase in the minimum wage and the floods and if they do then the pickups that the average rice farmer relies on will have to be imported and as such be subjected to the import taxes. I guess Thailand will revert to the bullock and cart and bicycle.

And save thousands of lives and public costs every year!

[khunkeith]

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!)

If your house is paid for, it's not hard to live on that. That works out to be 3000 THB a week. Staying out of the bars, owning a motorbike and not a car, etc, etc.

I knew a American expat that had a condo in Jomtien. He was a truck driver that hurt his back in an accident and was receiving about $250 USD dollars a week in insurance because he was not able to work (yeah, I know). He lived in a studio condo that he got for about 750,000 THB and paid cash for it. He drives a motor bike only and goes out to a bar one night a week. That works out to about 12,000 THB a month. If you eat Thai style, you live on a couple hundred baht a day for food or less.

[blackthorn2005]

So what!

Billions are lost through corruption

If you are talking Baht, try trillions!

[SouthernMan3]

I ask my wife this all the time.

Thais are smart enough.

Why not just start a new, local Thai brand ?

Result : employment, money stays in Thailand, lower cost (no import tax).

The list goes on............................

[SouthernMan3]

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:)

VERY !

[SouthernMan3]

So what!

Billions are lost through corruption

Off topic......But true.........But still off topic.

[SouthernMan3]

Also, I want my Harley here but the import tax is rediculous so I settle for a Honda.

Sure, I could afford it but am I dumb ?

No,

[cheshiremusicman]

CLS-Class Coupé (Merc)

CLS 350 BlueEFFICIENCY

Manufacturer's List Price

including GST $139,855.00

Recommended maximum dealer delivery¹

including GST $2,692.31

Luxury Car Tax (LCT) $25,524.39

VIC Total Registration² $713.20

VIC Registration $263.30

VIC CTP² $0.00

VIC Stamp Duty $8,410.00

Drive Away Price

Base model featured only. $177,194.90 (5,670,236 Bht)

(Based on Victoria, Australia prices which vary from state to state depending on local gov stamp duty taxes)

A nieghbour of ours has one of these that his daughter used when studying in Melbourne Australia he then imported the vehicle.

So assuming that he paid the tax at say the 328% (example only) the vehicle in the end would have cost him $581,282 (AUD) or 18,598,282 Baht.

I see a lot of luxury imported vehicles driving around Chiangmai and the carpark at our son's school is a motoring buffs Disneyland. How on earth can Thai's (A "3rd World" country) afford such luxury items.

We hear stories of corporations like Toyota and the like considering relocating to nieghbouring countries due to the increase in the minimum wage and the floods and if they do then the pickups that the average rice farmer relies on will have to be imported and as such be subjected to the import taxes. I guess Thailand will revert to the bullock and cart and bicycle.

And save thousands of lives and public costs every year!

Well said 'Tanaka'. Can't wait to take my new 'Driving test' on the 'bullock and cart' - already have a degree in cycling proficiency, think it runs out in 2050 and is 'World Wide & Wise'.

[NanLaew]

Just tootling around in my brand new red Evoque Dynamic LUX, my runabout for the odd occasions I am back in Scotland.

No plans to import this baby to a driving sh!thole like LOS.

But regarding the 'lost revenue' with all these dodgy imports. The money hasn't been lost to Thailand as the Customs chaps, all honest and hard-working Thai government chaps have the 'lost revenue' securely in their bank accounts. Great job they have; levying arbitrary rates on imports and when they want something new to tootle about in themselves, they just pick a nice one, make the import duty ridiculously high so the owner walks away or, if the owner has enough cash but the Thai Customs man still really, really wants in, he seizes it anyway and keeps it on red plates until it's time for a new one.

[FOODLOVER]

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!").

but a moron with money!

I knew i could find it! MUTTLEY!

http://www.youtube.com/watch?v=1OpmHeB5fV4

[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!

He's advanced. I continue to wander aimlessly asking for Tatas.

[metisdead]

Some inflammatory baiting posts and replies have been removed as well as off topic posts.

[boatguy]

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.

What if some other countries decided it was only fair to place a similar duty on vehicles buit in Thailand and imported to their country...to protect their own car industries.

I was looking into the idea of building some kit cars here in Thailand, but it just doesn't look like its worth the tremendous hassel.....even producting it here in Thailand.

[boatguy]

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).

I think ALL cars in Singapore are expensive as a result of taxing, but it has a more reasonable goal....to try and curb the total number of vehicles in that small city-country..... Its not a 'protectionist tax' to their car industry.

I beleve Singapore is the highest 'per capita' ownership of MB of anywhere in the world. And Hong Knog used to be (or may still be) the highest per-captia ownership of Rolls Royce. Its the Chinese announcement that they 'have arrived' in the income world.

[boatguy]

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

Maybe some farangs are just concerned with how easy it is for them to lose their house investment SO EASILY in Thailand

[GentlemanJim]

The fact is that in Thailand the Elite and wealthy need some form of identifier to state to all around that they are better than the majority. One of the ways they do this is through luxury vehicles. They will never ever reduce the tax on these vehicles, as if they did, every man and his dog would be able to afford one, and what would the elite and wealthy do then to try and display their position to Thai society?

My wife loves MB, I have had loads in the UK and I tell her, look, it's just a German Taxi. She never knew what I meant until recently we were watching a film made in Germany and of course every other car on the road was a MB. She was shocked. I just cannot bring myself to buy one knowing the real situation with the price of these cars. I had a nice Boxter in the UK, second hand, it cost me 30K sterling, whats that about 1.5M baht. The exact same car here was on sale for 5.2 M baht, same year, same spec. It is madness, and simply to allow the elite to say, look at us! Sadly these stupid taxes are here to stay.

[oldsailor35]

Wasn't there a similar story a couple of weeks ago about the children of the Hi So sect studying abroad buying luxury cars, holding on to them for 12 months then and sending them home to daddy avoiding the tax.

Yes there was a story a few weeks ago exactly as you describe. It was tedious and boring then and even worse now as a second run.

Hang on ! just hang on. If the rotten farang car dealer had'nt forced these kids into this, they would never have done it, now poor old dad is in the shit .........bloody farang !

[oldsailor35]

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

So could'nt you just build a replica here in Thailand ?

[oldsailor35]

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

Yes mate, i was wondering what he was 'ratting' on about !

[ALFREDO]

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

Register the bike in Australia, bring it to TH for max. 6 month, than you bring it to Malaysia, where it is, so I think also allowed to be for 6 month

and than you bring it back to TH. You can, possibly play this game also with Cambodia instead of Malaysia and with Singapore, or mix all four countries in a year. Keeps you always a bit busy so.

http://www.gt-rider....s-into-thailand

Could work like that. Check it out.

Edited March 16, 2012 by ALFREDO

[oldsailor35]

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 ? ? ?

The first thing they should do is hit the persons who brought them in knowing full well that they were cheating the country.

[ParadiseLost]

It is gross new-rich mentality to buy a Mercedes Benz or a BMW. Worst investment possible IMO.

Why not buy a cheaper car and invest the rest of the money in uplifting those less fortunate in one's own country?

Then nobody would see how rich and important you are...

[oldsailor35]

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 are right there, a neighbour of mine lives in an overcrowded dirty, unpainted wooden shack with no proper bathroom and toilet and an outside lean to cooking area (could'nt possibly call it a kitchen) and has a near new Toyota 4x4 parked in the front yard.

[boatguy]

Let's go for it.

I'm in !

I made this other posting over here, but never got any replies

http://www.thaivisa....age__p__5007682__

I know of several different mold possiblities, for sale,....and even a few builders who could do such a project there in Thailand. BUT how do you get them titled without some stupid outragous tax, constantly changing tax rules, and endless officaldom.??

Edited March 16, 2012 by boatguy

[GentlemanJim]

I have been reliably informed by a relative ( ) that the cheapest way to bring a performance/luxury car into the country is to bring in two. When at customs give one to the customs guys and then they let you keep one for yourself. Seems though it could work, and you save 30-40% importing the car . If anyone tries it can you let us know if it works.

[ALFREDO]

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

My nearby in Isaans countryside living Begium neighbour lives on a 10.000 Bath Monthly budget in a house he built since long.

That is 1.200.000.- in 10 years

A German here rents his house for 500 Baht in the month, I think he has a similar budget!

Edited March 16, 2012 by ALFREDO

[theanimaster]

Oh great we're losing money on the rich avoiding tax. I know... why don't we charge the poor and middle class people to "get even"? Sounds like a plausible Thai policy...