Big bikes - super expensive in Thailand?

[Hippidy He Ho]

It isn't only imported bikes.

The Thai manufactured Honda 500's are more expensive in Thailand than in America.

[JonnyF]

I did some digging and found something about tax on japanese big bikes going down 5% every year until it gets to just 5% in 2017...? True or too good to be true?

Link: http://www.gt-rider.com/thailand-motorcycle-forum/showthread.php/37032-The-Wheel-Deal-Bike-Production-and-Taxes

This was posted 11 months ago. Check the link to the story in Bangkok Post as well.

According to the third poster in the thread, the declining import tax is the result of the Free Trade Agreement between Thailand and Japan.

Yes the import tax goes down but they have another tax. I think its a excicse tax or something. I cant find the article but taxes went up sharpely on big bikes between 2012&2013

It went up to 123% in december 2012

I didnt realize it was 123%. I thought it was on a sliding scale based on engine size...

Actually you're right, its from 800-1000 cc at 123%, here is a quote from a news site:

"Meanwhile, the ministry also proposed to Cabinet raising excise taxes on imported luxury motorbikes to 123 per cent for 800-1,000cc cylinder capacity from the current 103 per cent. The new tax rate takes effect today.

The measure is expected to help the government gain more revenue of some Bt150 million. The ministry said those able to purchase such bikes are wealthy enough to pay higher taxes. (MCOT online news)"

150 million baht is 5 million USD. Chicken feed on the grand scale. It wouldn't even knock the froth off the top of the cost of the first car scheme that is currently grinding Bangkok to a standstill by introducing clueless new drivers swerving around the streets at 20 kph in red plated Vios, Jazz, Brio etc.

If they wanted to ease the congestion and pollution on the roads quickly and at a low cost they'd reduce these bike taxes and encourage more bikes to replace cars. Why should someone pay more tax for a fuel effecient, green, traffic easing motorbike?

Of course they don't give a damn about solving traffic problems, no money to be made...

[ll2]

 

My gosh. This must mean that thai people are super rich.

 

/sarcasm off.

 

Silly government.

 

btw a kawasaki vulcan you dont have to import they are available locally for "reasonable" prices. Its 497500 BHT.

Thanks man. It is still a bit on the overpriced side, but at least it is better than 700k BHT. Where did you get these numbers btw?

 

 

 

it is all about supporting the local production of motorcycles and forcing manufacturers to invest in thailand than importing bikes from somewhere else, discouraging buyers to get an import and trying to find ways to sponsor the debts from rice scheme.

lets say, they take it from rich and give it to the poorer people but in a twisted way.

yes, we suffer at the end!

 

 

High import taxes has been around a lot longer than the rice scheme so not sure why you are using that as an excuse.

 

Bc we got the recent tax rise at the same time when rice scheme gone corrupted. So it is not hard to assume.

Also triumph just assamble bikes here all i know.

Overall, sad but true.

Sent from my GT-N7100 using Thaivisa Connect Thailand mobile app

[BSJ]

Well it can be said with some confidence that the extortion called 'import duty' will not be coming down any time soon. Or we could say the money levied may have a name change but it will still be the same as what it is now in the future.

The government has made a big blunder with the rice pledging scheme. The cost are mounting up. It's been reported in the media. The government stands to lose on behalf of the country 100's of billions of baht. The pledged rice is sitting in warehouses getting older and less sellable. The cost of keeping it there is mounting up and the overseas sales of pledged rice are abysmal to say the least.

The money to run the country has to come from somewhere....and you big bike buyer are it!

[ricku]

"Meanwhile, the ministry also proposed to Cabinet raising excise taxes on imported luxury motorbikes to 123 per cent for 800-1,000cc cylinder capacity from the current 103 per cent. The new tax rate takes effect today.

The measure is expected to help the government gain more revenue of some Bt150 million. The ministry said those able to purchase such bikes are wealthy enough to pay higher taxes. (MCOT online news)"

Ooooh, that last line. Only in Thailand.. Really, it makes me angry enough to wanna mail a severed unicorn head to those retards.

What a bunch of morons! "Yeah those big bikers are so freaking wealthy!! Rich like movie-stars all of them!"

It has not occurred to them that a lot of people can just barely afford such bikes?

Edited August 12, 2013 by ricku

[poanoi]

How much did import tax on bikes over 1 liter go up ?

this is actually good news for those contemplating selling a big bike,

as one can expect 2nd hand big bikes will go up in price along with new big bikes

Edited August 12, 2013 by poanoi

[mania]

How much did import tax on bikes over 1 liter go up ?

this is actually good news for those contemplating selling a big bike,

as one can expect 2nd hand big bikes will go up in price along with new big bikes

True on the one hand but on the other it seems at least the Thai's mainly buy

on credit. As such they tend to always go new where the financing is well arranged.

[Hippidy He Ho]

How much did import tax on bikes over 1 liter go up ?

The extra tax that came into effect at the new year?

That was a government tax that effects all bikes within the given CC range, not just imported one.

I believe that 1000cc was the threshold for the 20% increase.

I wonder about the CBR1000 which is actually 999cc etc?

[RubberSideDown]

I just got majorly kicked in the balls by the 'ministry' on my 14R- had it been priced at least in the ballpark of US MSRP I would have purchased it a couple years ago- instead I had to wait until I could really justify spending double what it's really worth (and, truth be told, the wife is still not thrilled, and rightfully so).

At least I have the satisfaction of knowing I helped ease the tax burden caused by those who illegally import their bikes to circumvent the import tariff...

[Farang Paul]

My gosh. This must mean that thai people are super rich.

/sarcasm off.

Silly government.

btw a kawasaki vulcan you dont have to import they are available locally for "reasonable" prices. Its 497500 BHT.

Thanks man. It is still a bit on the overpriced side, but at least it is better than 700k BHT. Where did you get these numbers btw?

it is all about supporting the local production of motorcycles and forcing manufacturers to invest in thailand than importing bikes from somewhere else, discouraging buyers to get an import and trying to find ways to sponsor the debts from rice scheme.

lets say, they take it from rich and give it to the poorer people but in a twisted way.

yes, we suffer at the end!

Really then why are locally produced triumphs so expensive?

Triumph assemble/manufacture certain models in the Duty Free zone.

In order to sell those models in Thailand a complex process of documentation is required (otherwise many domestic manufacturers would move to duty free zones to take advantage of cheaper imports).

Triumph have determined that the cost of applying for and maintaining local sales certification is higher than the profit from the limited sales they could expect to make here. So sadly and ironically Triumphs made/assembled here in Thailand are transported to the docks, then re-imported with 123% duty + costs before being available to purchase.

Honda, Kawasaki and Ducati all manufacture/assemble here and sell their product here which is why CB 500's and ER6N / Versys are half the price of an imported NC 700X.

In the end it is a luxury tax - an effective one judging by increasing sales. As the market develops so will the number of bikes available - not long ago your only option was Kawasaki for a bike free of import duty, now there is Ducati and Honda with others following.

[JonnyF]

How much did import tax on bikes over 1 liter go up ?

this is actually good news for those contemplating selling a big bike,

as one can expect 2nd hand big bikes will go up in price along with new big bikes

True on the one hand but on the other it seems at least the Thai's mainly buy

on credit. As such they tend to always go new where the financing is well arranged.

Yes, and if you're buying a replacement then any gains you make on selling you'll lose (and then some) on buying the replacement.

[Hippidy He Ho]

According to the third poster in the thread, the declining import tax is the result of the Free Trade Agreement between Thailand and Japan.

Isn't it almost funny.

Thailand agrees to lose income in an international agreement, then adds in an extra 'local' tax which makes the product even more expensive than previously!

It's like the FTA between Asian countries on alcohol produced in the region around 2010. It was proposed that there needed to be a new Health Tax placed on alcohol.... only on imported alcohol though.

[dezy1801]

Compaired to my home country I paid less than 50% import tax on sportsbike in Thailand.

[JonnyF]

Compaired to my home country I paid less than 50% import tax on sportsbike in Thailand.

Really? What bike?

[dezy1801]

Compaired to my home country I paid less than 50% import tax on sportsbike in Thailand.

 

 

Really? What bike?

The bike I just bought R1.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

[Spoonman]

Compaired to my home country I paid less than 50% import tax on sportsbike in Thailand.

Really? What bike?

The bike I just bought R1.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Is it a lollipop bike (Brought in as parts).

[JonnyF]

Compaired to my home country I paid less than 50% import tax on sportsbike in Thailand.

Really? What bike?

The bike I just bought R1.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

OK the R1 from RedBaron, at circa 7xx,xxx baht?

Surprising that's 50% less import tax than another country. But even if it is - it doesn't really justify the cost in Thailand IMO. As I've said before, given the traffic problems here I would have thought they'd encourage people to move to motorbikes rather than giving discounts on more cars. Of course this logic only applies if you're trying to fix the real issues rather than line your own pockets whilst in power so it might not apply here.

[dezy1801]

 

 

Compaired to my home country I paid less than 50% import tax on sportsbike in Thailand.

 

 

Really? What bike?

 

The bike I just bought R1.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

 

 

OK the R1 from RedBaron, at circa 7xx,xxx baht?

 

Surprising that's 50% less import tax than another country. But even if it is - it doesn't really justify the cost in Thailand IMO. As I've said before, given the traffic problems here I would have thought they'd encourage people to move to motorbikes rather than giving discounts on more cars. Of course this logic only applies if you're trying to fix the real issues rather than line your own pockets whilst in power so it might not apply here.

Yeah thats the one, I totally agree with the import tax being over the top and another way to make money but we as buyers have little choice either buy it and accept it or just leave it, but now living here in Thailand I am comfortable to pay the extra £'s more for a bike I would be lucky enough to ride a quarter of the year due to the weather in my home country and where I stay in Thailand I can enjoy the open road and the bike the majority of the year.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

[pastafarian]

With America having the lowest prices for bikes out of pretty much anywhere the OP will be paying more regardless of where he lives if he moves away so to compare prices here to there is always going to be a shock. I recently contemplated buying a Multistrada here now the prices have gone down as the base model (still a fantastic bike!) is now 'only' 858k baht here which is about 200k baht more than the UK price. But, like it was mentioned in the previous post, we can ride here almost year round so we can enjoy our bikes a lot more :-)

And when you take into account how much you save on rent or the price of a house then paying a bit more for a bike isn't too bad a trade off!

[pokerkid]

as always most people look only at the purchase cost of a big bike or car here in Thailand. Running costs are a lot lower then in farangland (depreciation, service, gasoline,etc).

[ricku]

I do wonder what the bike manufacturers (Honda, Harley, Kawasaki, Triumph, e.t.c.) think about Thailand's crazy import taxes. Or how pissed they are.. Surely these taxes must hurt their sales over here?

The ministry says that "those who are able to purchase big bikes are wealthy enough to pay higher taxes". But I'll call BS on that one.

I am pretty sure the big bike market would skyrocket if the taxes came down to a sensible level.

Edited August 13, 2013 by ricku

[Hili]

I do wonder what the bike manufacturers (Honda, Harley, Kawasaki, Triumph, e.t.c.) think about Thailand's crazy import taxes. Or how pissed they are.. Surely these taxes must hurt their sales over here?

The ministry says that "those who are able to purchase big bikes are wealthy enough to pay higher taxes". But I'll call BS on that one.

I am pretty sure the big bike market would skyrocket if the taxes came down to a sensible level.

Guess they dont care much cause the market is just too small. Honda and Yamaha making its bucks with scooters, Kawasakis selling well due their local startegy. All the others are happy that they are premium brands here so they can charge accordingly (besides tax etc).

[ricku]

I do wonder what the bike manufacturers (Honda, Harley, Kawasaki, Triumph, e.t.c.) think about Thailand's crazy import taxes. Or how pissed they are.. Surely these taxes must hurt their sales over here?

The ministry says that "those who are able to purchase big bikes are wealthy enough to pay higher taxes". But I'll call BS on that one.

I am pretty sure the big bike market would skyrocket if the taxes came down to a sensible level.

Guess they dont care much cause the market is just too small. Honda and Yamaha making its bucks with scooters, Kawasakis selling well due their local startegy. All the others are happy that they are premium brands here so they can charge accordingly (besides tax etc).

Yeah, I wonder why their market is so small in Thailand.. It couldn't have anything to do with the lala-taxes, could it?

In Thailand, all foreign big bikes are considered luxury goods that only the rich hi-so-class is prepared to pay for. But this is largely because of the silly taxes.

The truth is that many of the imported bikes aren't very "luxurious" at all. In farang countries even average and somewhat poor people can afford most of these bikes.

Like I said, lower the tax to a sensible level and the market will explode.

Edited August 14, 2013 by ricku

[poanoi]

Oh yes, skip taxes altogether and there won't be revenues to pay police salaries,

and the largest organized crime scheme is eliminated for a while,

until the vacuum is occupied by another gang.

[pokerkid]

I do wonder what the bike manufacturers (Honda, Harley, Kawasaki, Triumph, e.t.c.) think about Thailand's crazy import taxes. Or how pissed they are.. Surely these taxes must hurt their sales over here?

The ministry says that "those who are able to purchase big bikes are wealthy enough to pay higher taxes". But I'll call BS on that one.

I am pretty sure the big bike market would skyrocket if the taxes came down to a sensible level.

Guess they dont care much cause the market is just too small. Honda and Yamaha making its bucks with scooters, Kawasakis selling well due their local startegy. All the others are happy that they are premium brands here so they can charge accordingly (besides tax etc).

Yeah, I wonder why their market is so small in Thailand.. It couldn't have anything to do with the lala-taxes, could it?

In Thailand, all foreign big bikes are considered luxury goods that only the rich hi-so-class is prepared to pay for. But this is largely because of the silly taxes.

The truth is that many of the imported bikes aren't very "luxurious" at all. In farang countries even average and somewhat poor people can afford most of these bikes.

Like I said, lower the tax to a sensible level and the market will explode.

Big bikes are luxury articles for most of the thai population tax or no tax. In farangland average people can also afford to go on holidays to far exotic destinations. This also is a luxury for most of the thais even there is no such thing as a travel tax.

[JonnyF]

With America having the lowest prices for bikes out of pretty much anywhere the OP will be paying more regardless of where he lives if he moves away so to compare prices here to there is always going to be a shock. I recently contemplated buying a Multistrada here now the prices have gone down as the base model (still a fantastic bike!) is now 'only' 858k baht here which is about 200k baht more than the UK price. But, like it was mentioned in the previous post, we can ride here almost year round so we can enjoy our bikes a lot more :-)

And when you take into account how much you save on rent or the price of a house then paying a bit more for a bike isn't too bad a trade off!

These are fair points, but I was looking at it from a broader point of view. I can't see how a CBR600RR is a luxury item, it's a middle of the range motorbike. People don't really 'need' a Toyota Camry when they could just buy a Vios to drive to work and yet the cars aren't subject to the huge luxury taxes despite being far more luxurious - whilst also causing pollution and congestion issues.

Of course we can say it's OK because we can afford it, or the sun shines more than it does at home so I can ride it more but that's not really the issue IMO. The policy just doesn't make sense in the broader scheme of things (other than the obvious kickbacks for those making the deals with the local manufacturers) especially given the 100,000 baht discount car scheme.

Hopefully these issues will become less irritating for the consumer as the quality of the locally made options increases as we've seen lately with the M795, Z800 and hopefully Honda 650 inline 4.

I realize there's nothing we can do about it, I just find it annoying...

[pastafarian]

With America having the lowest prices for bikes out of pretty much anywhere the OP will be paying more regardless of where he lives if he moves away so to compare prices here to there is always going to be a shock. I recently contemplated buying a Multistrada here now the prices have gone down as the base model (still a fantastic bike!) is now 'only' 858k baht here which is about 200k baht more than the UK price. But, like it was mentioned in the previous post, we can ride here almost year round so we can enjoy our bikes a lot more :-)

And when you take into account how much you save on rent or the price of a house then paying a bit more for a bike isn't too bad a trade off!

These are fair points, but I was looking at it from a broader point of view. I can't see how a CBR600RR is a luxury item, it's a middle of the range motorbike. People don't really 'need' a Toyota Camry when they could just buy a Vios to drive to work and yet the cars aren't subject to the huge luxury taxes despite being far more luxurious - whilst also causing pollution and congestion issues.

Of course we can say it's OK because we can afford it, or the sun shines more than it does at home so I can ride it more but that's not really the issue IMO. The policy just doesn't make sense in the broader scheme of things (other than the obvious kickbacks for those making the deals with the local manufacturers) especially given the 100,000 baht discount car scheme.

Hopefully these issues will become less irritating for the consumer as the quality of the locally made options increases as we've seen lately with the M795, Z800 and hopefully Honda 650 inline 4.

I realize there's nothing we can do about it, I just find it annoying...

Oh I agree 100%, the 'luxury' tax is ridiculous and every car other than a Suzuki Swift should also be subject to it if you use their reasoning. To give a first time car tax rebate totalling millions only to raise the 'big' bike tax is a kick in the teeth, wish there were more big bike owners in the Thai government!

[ricku]

It is simple. Only bikes and cars that can add some serious shine and status to your face and hi-so-level, gets luxury taxed.

The Toyota Camry is a very nice car, but it is still a Toyota, so no serious face level to be gained from that one. Hence why it doesn't get luxury taxed.

A CBR sportbike however. "Wow, How cool is that?! .. Or a Mini Cooper - double wow! It is from England and all, soooo hi-so! Gotta put some humongous tax on that one."

Edited August 14, 2013 by ricku

[ll2]

With America having the lowest prices for bikes out of pretty much anywhere the OP will be paying more regardless of where he lives if he moves away so to compare prices here to there is always going to be a shock. I recently contemplated buying a Multistrada here now the prices have gone down as the base model (still a fantastic bike!) is now 'only' 858k baht here which is about 200k baht more than the UK price. But, like it was mentioned in the previous post, we can ride here almost year round so we can enjoy our bikes a lot more :-)

And when you take into account how much you save on rent or the price of a house then paying a bit more for a bike isn't too bad a trade off!

These are fair points, but I was looking at it from a broader point of view. I can't see how a CBR600RR is a luxury item, it's a middle of the range motorbike. People don't really 'need' a Toyota Camry when they could just buy a Vios to drive to work and yet the cars aren't subject to the huge luxury taxes despite being far more luxurious - whilst also causing pollution and congestion issues.

Of course we can say it's OK because we can afford it, or the sun shines more than it does at home so I can ride it more but that's not really the issue IMO. The policy just doesn't make sense in the broader scheme of things (other than the obvious kickbacks for those making the deals with the local manufacturers) especially given the 100,000 baht discount car scheme.

Hopefully these issues will become less irritating for the consumer as the quality of the locally made options increases as we've seen lately with the M795, Z800 and hopefully Honda 650 inline 4.

I realize there's nothing we can do about it, I just find it annoying...

maybe cbr600r is not a luxury item in our countries but in Thailand where people work for 9000 thb per month, a 600,000 thb bike is sure a luxury item here for a two wheeled transport when a honda wave is 40 k!

So, i do not find it bs if thai authorities says big bikes are luxury items, this is true, cannot oppose that.

Still, do they need that small tax from such a small market? Instead of raising the taxes, they have to take care of corruption or billions of dollars gone to the large pit of rice scheme or other things first before they come to bikes!

And, taxing bikes but giving incentives for eco cars are bs especially if the infrastructure is not enough to handle that many cars, yes.

Besides, another strong point, i think these high taxes work and force makers to invest in Thailand and build bikes here, as nowadays, we are getting more big bikes made in Thailand which we were dreaming for some models to be available here for cheap 5 - 6 years years ago! think this way! new big bikes are arriving constantly!

Edited August 14, 2013 by ll2

[mania]

I remember that Thai made video about the taxes also pointing out that

the higher tax allows a lot of small corrupt business to flourish

The folks that smuggle in parts & whole vehicles both two & four wheeled.

Wasn't that recent event with the double deck trailer full of Ferrari's & Lambo's all illegal?

DSI ready to name buyers of super cars

http://www.carscoops.com/2013/05/lamborghini-ferrari-and-other-luxury.html

So as always there are probably multiple persons/sectors feeding from this trough of corruption