Crackdown: More Luxury Cars Snared In Tax Scam Raids In And Near Bangkok

[pb1936]

maybe time to stop the xenophobic 307% import scam ... as a farang or thai, you have two options... drive local crap or pay super inflated prices for a descent car

All this arises out of a ridiculous "protective" taxation system.

eventually Thailand will have to stop this one-sided tax on imported cars - or at least reuse it to non-prohibitive levels at present it is just another breeding ground for corruption graft and nepotism......

thailand has signed fre-trade agreements with such countries as Japan and Australia which are well into their introduction periods - it will be interesting to see what happens when the duties on imports from Japan disappear.

Agree entirely............ This is the route of the problem.

[Robby nz]

The abbot of Wat Pak Nam, Irrigation Department director general Lertvirote Kowattana and the secretary to Justice Minister Kasem Rattanasunthorn were among them.

What is the Abbot of a temple doing with a luxury car?

And 2 civil servants even, I wonder if these jobs in themselves really pay enough to allow for luxury cars?

[pistachios]

The abbot of Wat Pak Nam, Irrigation Department director general Lertvirote Kowattana and the secretary to Justice Minister Kasem Rattanasunthorn were among them.

What is the Abbot of a temple doing with a luxury car?

And 2 civil servants even, I wonder if these jobs in themselves really pay enough to allow for luxury cars?

How else would you spend all the donations that are flowing to the temple?

[Thai at Heart]

maybe time to stop the xenophobic 307% import scam ... as a farang or thai, you have two options... drive local crap or pay super inflated prices for a descent car

All this arises out of a ridiculous "protective" taxation system.

eventually Thailand will have to stop this one-sided tax on imported cars - or at least reuse it to non-prohibitive levels at present it is just another breeding ground for corruption graft and nepotism......

thailand has signed fre-trade agreements with such countries as Japan and Australia which are well into their introduction periods - it will be interesting to see what happens when the duties on imports from Japan disappear.

Agree entirely............ This is the route of the problem.

An utterly corrupt customs is the problem.

If the taxes were 50%, if customs was corrupt, the cars would still get in untaxed.

[Thereisnoif]

Only in Thailand can a Buddhist monk owns a Lamborghini... Incredible.

No you're wrong, religions is rubbish for delusional fools no matter what the religion is .

[3SoiDogNight]

The car tax already is place a huge scam.

Kudos to those that get around it!

BTW, since when did a mid-1980s Toyota Van become a "luxury car"?

[Bagwan]

When you can afford such cars I guess you can also afford the taxes which go with it no ?

200% to 300% tax is very stiff indeed. I can afford it but just can't bring myself to do it. It goes against my grain to pay three times what the car actually costs.

Pssst. Wanna buy a Reliant Robin? It's going cheep.

[khaowong1]

Did they get the owner of that Pink Bentley yet?

[HughJass]

so that's where all those knock off cars from the UK and Europe end up

[retell]

The abbot of Wat Pak Nam, Irrigation Department director general Lertvirote Kowattana and the secretary to Justice Minister Kasem Rattanasunthorn were among them.

What is the Abbot of a temple doing with a luxury car?

And 2 civil servants even, I wonder if these jobs in themselves really pay enough to allow for luxury cars?

How else would you spend all the donations that are flowing to the temple?

could also be he just is rich and started to be a monk after

[ratcatcher]

High ranking police officers, military brass, politicians, businessmen and even a high rolling monk. Yet no rich teachers. I wonder why.

[pistachios]

High ranking police officers, military brass, politicians, businessmen and even a high rolling monk. Yet no rich teachers. I wonder why.

I'm sure there are among that group a few "teachers" who are owning private schools that are asking the same annual fees as Harvard for 6 years old kids.

[brfsa2]

All this arises out of a ridiculous "protective" taxation system.

eventually Thailand will have to stop this one-sided tax on imported cars - or at least reuse it to non-prohibitive levels at present it is just another breeding ground for corruption graft and nepotism......

thailand has signed fre-trade agreements with such countries as Japan and Australia which are well into their introduction periods - it will be interesting to see what happens when the duties on imports from Japan disappear.

yeah, the import tax for vehicle is ridiculous, even electric car/motorcycles the tax is the same as high.

Im sure It's the car manufacturing lobby. Thailand manufactures or assembles almost every car brand I can think of, they must have a part on this...

think of the new honda CB500, completely manufactured in Thailand, is sold here 20% more expensive than in the US, being shipped from here.

At least if the public transportation was good, and not too many rip-off high way prices, and electric vehicles... it could justify the over-priced cost of oil motor-vehicles...

After this incident, I bet the already tax-payed imported car prices will sky rocket...

Edited June 11, 2013 by brfsa2

[webfact]

200 luxury cars at Laem Chabang port 'clean'
By English News



CHON BURI, June 11 – More than 200 luxury cars under a thorough inspection procedure have been legally imported, and are not related to those recently seized for tax evasion, according to the director of Laem Chabang port.

Suthinan Hatthawong said there were not 2,000 luxury cars at the port as incorrectly reported.

He said a thorough check at warehouses found 81 'super cars' which would go through the legal inspection procedure while 128 others will be collected by their owners who have received legal documents to pay taxes.

He said the luxury cars have been kept in dangerous goods warehouses as required by the International Maritime Organization Convention.

The 200 luxury cars at Laem Chabang port are assembled units while the controversial cars involving in tax evasion were registered as reassembled, he said.

He gave assurances that every luxury car at Laem Chabang has to go through a thorough legal inspection procedure before it is delivered to the owner.

Authorities recently seized 120 luxury cars suspected to have been illegally imported in raids at various locations in Bangkok and several provinces. (MCOT online news)


-- TNA 2013-06-11

[bigbamboo]

200 luxury cars at Laem Chabang port 'clean'

By English News

CHON BURI, June 11 – More than 200 luxury cars under a thorough inspection procedure have been legally imported, and are not related to those recently seized for tax evasion, according to the director of Laem Chabang port.

Suthinan Hatthawong said there were not 2,000 luxury cars at the port as incorrectly reported.

He said a thorough check at warehouses found 81 'super cars' which would go through the legal inspection procedure while 128 others will be collected by their owners who have received legal documents to pay taxes.

He said the luxury cars have been kept in dangerous goods warehouses as required by the International Maritime Organization Convention.

The 200 luxury cars at Laem Chabang port are assembled units while the controversial cars involving in tax evasion were registered as reassembled, he said.

He gave assurances that every luxury car at Laem Chabang has to go through a thorough legal inspection procedure before it is delivered to the owner.

Authorities recently seized 120 luxury cars suspected to have been illegally imported in raids at various locations in Bangkok and several provinces. (MCOT online news)

-- TNA 2013-06-11

200 not 2000 as originally reported.

Those damn typos again.

[paulchiangmai]

Looks like someone will be missing their nice 1968 red Mustang. Stand by for auction time.

• Correct me if I am wrong but wasn't the Ford Mustang the cheapest car you could buy in the US back in the 60's. My experience of Mustangs was that they were on a similar luxury level to my first ever car,a 1947 Hillman minx.

[cloghead]

All this arises out of a ridiculous "protective" taxation system.

eventually Thailand will have to stop this one-sided tax on imported cars - or at least reuse it to non-prohibitive levels at present it is just another breeding ground for corruption graft and nepotism......

thailand has signed fre-trade agreements with such countries as Japan and Australia which are well into their introduction periods - it will be interesting to see what happens when the duties on imports from Japan disappear.

yeah, the import tax for vehicle is ridiculous, even electric car/motorcycles the tax is the same as high.

Im sure It's the car manufacturing lobby. Thailand manufactures or assembles almost every car brand I can think of, they must have a part on this...

think of the new honda CB500, completely manufactured in Thailand, is sold here 20% more expensive than in the US, being shipped from here.

At least if the public transportation was good, and not too many rip-off high way prices, and electric vehicles... it could justify the over-priced cost of oil motor-vehicles...

After this incident, I bet the already tax-payed imported car prices will sky rocket...

Call these guys and find out...http://www.executive-supercars.com/en/01_home.html

[OzMick]

Looks like someone will be missing their nice 1968 red Mustang. Stand by for auction time.

• Correct me if I am wrong but wasn't the Ford Mustang the cheapest car you could buy in the US back in the 60's. My experience of Mustangs was that they were on a similar luxury level to my first ever car,a 1947 Hillman minx.

Quite a few were imported into Oz at considerable expense where the buyers found they had the mechanicals of a Falcon with worse handling due to the body design. A lot of money for a "Hey, look at me!" statement.

[Lammbock]

The high tax on "luxury" cars is so ridicules. If I have to pay 9mio Baht wich is around 220.000 Euro (As seen in Siam Paragon) for a 7series BMW no wonder people looking for a way around to buy cars like these.

Why Thailand always has to be different in so many things.

If someone wants a luxury car, pay for it ... taxes included. Otherwise, you could argue about the price of a plate of 'som tam' in London being unfair, or the price of anything anywhere being unfair. Local customs, rules and regulations apply all over the world ... although some are enforced more than others.

...and tell me what is the idea of charging 5mio Baht Tax on a car?

[Naam]

The high tax on "luxury" cars is so ridicules. If I have to pay 9mio Baht wich is around 220.000 Euro (As seen in Siam Paragon) for a 7series BMW no wonder people looking for a way around to buy cars like these.

Why Thailand always has to be different in so many things.

If someone wants a luxury car, pay for it ... taxes included. Otherwise, you could argue about the price of a plate of 'som tam' in London being unfair, or the price of anything anywhere being unfair. Local customs, rules and regulations apply all over the world ... although some are enforced more than others.

...and tell me what is the idea of charging 5mio Baht Tax on a car?

the idea is to tax those who can afford and are willing to pay the tax. as simple as that.

[3SoiDogNight]

Sounds like a bunch of jealous 2nd grade school kids when I read these comments envious of other people's possessions.

When you can afford such cars I guess you can also afford the taxes which go with it no ?

200% to 300% tax is very stiff indeed. I can afford it but just can't bring myself to do it. It goes against my grain to pay three times what the car actually costs.

Tough titties then... but that's how it is in a LOT of Asian countries... I remember it being the same in the Philippines. That's just the way it is. Don't like it? Buy a Toyota.

Funny you say; "buy a Toyota".

I want to buy a Toyota but it's hit with a 328% tax as well. I refuse to buy the junk made here in Thailand -Altus, Vios, etc. I'm a big guy and I'm sick of curling in to a fetal position to get in and out of these little Tupperware s--tboxes made in Thailand. I'll be damned if I buy one at the cost of an entry level Cadillac back in the US.

I'm looking to buy a used Toyota Crown Royal Saloon. It's suggested retail price when new is about $42,000 (USD) or 1.400,000 baht.

It's an up-market Toyota but hardly a filthy rich man's car. It's target buyer is a middle class buyer. Thailand's huge tax pushes the cost of the car over 3,000,000 baht! That is the cost for a Jaguar XJ or fully loaded Mercedes S-class with top V8 engine (a little less than the V12).

In Hong Kong, a 10 year old Toyota Crown Royal Saloon would sale for about $5000(USD) or 150,000 but here in Thailand, that same car is 800,000 baht USED!

If I were to go to Hong Kong and buy one for 150,000 baht, I'd still be hit with a 328% tax.

Do you see the problem with a tax that far exceeds the cost to make the product and far exceeds what market forces dictate?

This is not just hurting the rich guys and someone buying a 10 year old car for 150,000 baht is hardly "rich".

Same for the Holden Monaro and Commodore. Those aren't luxury cars but are taxed like a Rolls Royce.

laurentbkk:

Was that meant to be a joke? Do you have any idea how high the tax is on imported cars? It's not just luxury & sports cars either.

I'm sure you can afford 100 baht for a bottle of Singha at a local bar. So why not charge you 300 baht since you could probably afford that as well?

Edited June 11, 2013 by 3SoiDogNight

[Thai at Heart]

The high tax on "luxury" cars is so ridicules. If I have to pay 9mio Baht wich is around 220.000 Euro (As seen in Siam Paragon) for a 7series BMW no wonder people looking for a way around to buy cars like these.

Why Thailand always has to be different in so many things.

If someone wants a luxury car, pay for it ... taxes included. Otherwise, you could argue about the price of a plate of 'som tam' in London being unfair, or the price of anything anywhere being unfair. Local customs, rules and regulations apply all over the world ... although some are enforced more than others.

...and tell me what is the idea of charging 5mio Baht Tax on a car?

It's a consumption tax, because income tax evasion is massive.

[3SoiDogNight]

The high tax on "luxury" cars is so ridicules. If I have to pay 9mio Baht wich is around 220.000 Euro (As seen in Siam Paragon) for a 7series BMW no wonder people looking for a way around to buy cars like these.

Why Thailand always has to be different in so many things.

If someone wants a luxury car, pay for it ... taxes included. Otherwise, you could argue about the price of a plate of 'som tam' in London being unfair, or the price of anything anywhere being unfair. Local customs, rules and regulations apply all over the world ... although some are enforced more than others.

...and tell me what is the idea of charging 5mio Baht Tax on a car?

It's a consumption tax, because income tax evasion is massive.

How is it a consumption tax when most of these cars would hardly be driven? None of these cars would be daily drivers and may only go 2000 kilometers a year. If that.

[Tboy928]

Also it would be interesting to trace the origin of the cars to see if they leagally obtained in the first place. I would guess that a few at least have been stolen. I lost a nice 911 cabrio out of my garage in Sydney, wonder if it is here?

and what if you been buying one of this cars that you think payd taxes ? And the Thais come after your car, or what would happend , nobody asked that q ?

[wilcopops]

Basically it is down to the ridiculous levels of duty that Thailand levies on these sort of products. They had the same problem with the yachting community and in essence expelled are large industry from the country in doing so - and despite some reductions the industry has failed to return in any significant way.

Somebody said earlier that if taxes were at 50% there would still be corruption.......maybe - but certainly the rewards are not as attractive as they are at present.

VAT in EU countries has been as high as 33% and it certainly generates some "avoidance" or "evasion" at that level.

I looked into buying a Porsche recently, from the official Thai dealership - the duties on that add up to 320% of the value attributed b Thai customs and excise. So you can see that if you kbnow the right people there's a lot of saving to be made and shared amongst corrupt officials.

[Gulfsailor]

Sounds like a bunch of jealous 2nd grade school kids when I read these comments envious of other people's possessions.

When you can afford such cars I guess you can also afford the taxes which go with it no ?

200% to 300% tax is very stiff indeed. I can afford it but just can't bring myself to do it. It goes against my grain to pay three times what the car actually costs.

Tough titties then... but that's how it is in a LOT of Asian countries... I remember it being the same in the Philippines. That's just the way it is. Don't like it? Buy a Toyota.

Funny you say; "buy a Toyota".

I want to buy a Toyota but it's hit with a 328% tax as well. I refuse to buy the junk made here in Thailand -Altus, Vios, etc. I'm a big guy and I'm sick of curling in to a fetal position to get in and out of these little Tupperware s--tboxes made in Thailand. I'll be damned if I buy one at the cost of an entry level Cadillac back in the US.

I'm looking to buy a used Toyota Crown Royal Saloon. It's suggested retail price when new is about $42,000 (USD) or 1.400,000 baht.

It's an up-market Toyota but hardly a filthy rich man's car. It's target buyer is a middle class buyer. Thailand's huge tax pushes the cost of the car over 3,000,000 baht! That is the cost for a Jaguar XJ or fully loaded Mercedes S-class with top V8 engine (a little less than the V12).

In Hong Kong, a 10 year old Toyota Crown Royal Saloon would sale for about $5000(USD) or 150,000 but here in Thailand, that same car is 800,000 baht USED!

If I were to go to Hong Kong and buy one for 150,000 baht, I'd still be hit with a 328% tax.

Do you see the problem with a tax that far exceeds the cost to make the product and far exceeds what market forces dictate?

This is not just hurting the rich guys and someone buying a 10 year old car for 150,000 baht is hardly "rich".

Same for the Holden Monaro and Commodore. Those aren't luxury cars but are taxed like a Rolls Royce.

laurentbkk:

Was that meant to be a joke? Do you have any idea how high the tax is on imported cars? It's not just luxury & sports cars either.

I'm sure you can afford 100 baht for a bottle of Singha at a local bar. So why not charge you 300 baht since you could probably afford that as well?

Get an Indonesian assembled Toyota Crown Royal. ASEAN, thus no duties. Only excise, interior tax and vat. For a model up to 3000cc a little over 100% altogether. But that would be identical to any Thai manufactured car in the same class. Australian and New Zealand cars also have reduced duties, due to trade agreements. Japan rates are coming down over the course of the next 5 years as well.

[3SoiDogNight]

Get an Indonesian assembled Toyota Crown Royal. ASEAN, thus no duties. Only excise, interior tax and vat. For a model up to 3000cc a little over 100% altogether. But that would be identical to any Thai manufactured car in the same class. Australian and New Zealand cars also have reduced duties, due to trade agreements. Japan rates are coming down over the course of the next 5 years as well.

How would I be able to locate a 1999-2003 Toyota Crown Royal Saloon made in Indonesia?

All the ones I looked at were made in Japan and are still going for over 800,000 baht despite being 10+ years old.

If I were to import a used one from Indonesia, what would my tax rate be?

BTW, I'm not concerned about resale because I plan on keeping mines forever or until Toyota goes back to the boxy shape and get rid of the ugly jellybean shape (2004 and newer)

[Thai at Heart]

Get an Indonesian assembled Toyota Crown Royal. ASEAN, thus no duties. Only excise, interior tax and vat. For a model up to 3000cc a little over 100% altogether. But that would be identical to any Thai manufactured car in the same class. Australian and New Zealand cars also have reduced duties, due to trade agreements. Japan rates are coming down over the course of the next 5 years as well.

How would I be able to locate a 1999-2003 Toyota Crown Royal Saloon made in Indonesia?

All the ones I looked at were made in Japan and are still going for over 800,000 baht despite being 10+ years old.

If I were to import a used one from Indonesia, what would my tax rate be?

BTW, I'm not concerned about resale because I plan on keeping mines forever or until Toyota goes back to the boxy shape and get rid of the ugly jellybean shape (2004 and newer)

I seem to remember the last time I saw a pricelist from our local Toyota, there was a crown at the bottom of the list. Go ask the dealer

[3SoiDogNight]

Get an Indonesian assembled Toyota Crown Royal. ASEAN, thus no duties. Only excise, interior tax and vat. For a model up to 3000cc a little over 100% altogether. But that would be identical to any Thai manufactured car in the same class. Australian and New Zealand cars also have reduced duties, due to trade agreements. Japan rates are coming down over the course of the next 5 years as well.

How would I be able to locate a 1999-2003 Toyota Crown Royal Saloon made in Indonesia?

All the ones I looked at were made in Japan and are still going for over 800,000 baht despite being 10+ years old.

If I were to import a used one from Indonesia, what would my tax rate be?

BTW, I'm not concerned about resale because I plan on keeping mines forever or until Toyota goes back to the boxy shape and get rid of the ugly jellybean shape (2004 and newer)

I seem to remember the last time I saw a pricelist from our local Toyota, there was a crown at the bottom of the list. Go ask the dealer

The dealer only sales new cars. I'm looking for a 1999-2003 model. They wont have that on their lot.