Lower tariffs on some luxury products

[zydeco]

Straw. Camel. Back. Hasn't happened yet. But it's getting there. All these pinpricks and eventually you start to lose serious blood. Malaysia looking better by the day.

[culicine]

Well as far as i know something is wrong, tariffs on cosmetics is actually 40%.

Its way higher than any country i have ever dealt with and seriously ruins the place as a Shopping hub for decent luxury items, most decent brands just dont bother with Thailand and thats why there is so much fake and copies and junk here.

Ofcourse the finance minister wouldn't care about that, they just want to make as much from importers as possible and who cares about the country!

Governments just want to support their own industries in fake products. People will just buy the real thing if they are priced reasonably. Only the wannabees that can't afford the real thing will buy fake stuff. This policy will just make it easier on the pockets of the rich who would never buy fake products anyway....and make in easier for me to get drunk on a nice Aussie red

[ginjag]

The other day I was in a shop and had a demo of a small Bose blue tooth speaker. The sound was fantastic. I asked the price and was told 9,990 Baht. I open my mobile phone to check prices and found that the same speaker is $199 everywhere, so the Bangkok price is 50% higher than anywhere outside of Thailand. It is crazy. How about food supplements? I'd love to purchase them in Thailand, but they are beyond my means. I order in the USA and wait for someone who is flying this way to carry them.

Is this something you just discovered? Thanks for bringing it to our attention as I'm sure this is news to everyone. So when you factor in the cost of return airfare to go anywhere else to buy the Bose speaker, the Thai price is really a bargain!

If one happens to be on a trip abroad, and brings one back ?????

[allan michaud]

"The other day I was in a shop and had a demo of a small Bose blue tooth speaker. The sound was fantastic. I asked the price and was told 9,990 Baht. I open my mobile phone to check prices and found that the same speaker is $199 everywhere, so the Bangkok price is 50% higher than anywhere outside of Thailand. It is crazy. How about food supplements? I'd love to purchase them in Thailand, but they are beyond my means. I order in the USA and wait for someone who is flying this way to carry them."

Me too. I don't even bother to check prices in Thailand now for camera gear. I have spent many thousands in Thailand over the years but stopped a few years back when they jacked up the tax. It has been cheaper for me to fly to Singapore from Phnom Penh, although now we seem able to get most equipment here, normally same price as Singapore and usually 25-35% cheaper than Thailand. I also regularly get stuff brought out by people from the US, UK or Australia as it's cheaper there too. I also take large amounts of foreign foods from Phnom Penh when I travel to see my wife in Khon Kaen as many items either cannot be found outside Bangkok or are often double the price. One I noticed was imported cream, $4.50 in Phnom Penh, Baht 345 in Khon Kaen for the exact same product, thankfully there is Thai cream at around $5 a pop.

[drdoom6996]

Since we have so many Sherlock wannabe's here, I have a theory for you to ponder.

The FM's wife gets together with other MP's wives and women MP's and tell the FM that their toiletries are to expensive and they want to go to Singapore. The FM and his MP friends decide to get together at a resort and have a thinking session (I know I'm presuming they can think). They can bill the resort bill to the government. While trying to figure it all out, one of them says "what would Taksin do?". One of the others says, "get rid of the damned taxes". The price comes down and the wives stay home. Brilliant, thinking session over, drinking session to begin. And don't forget to bill the government.

What do you think of my therory?

[dunque]

Well as far as i know something is wrong, tariffs on cosmetics is actually 40%.

Its way higher than any country i have ever dealt with and seriously ruins the place as a Shopping hub for decent luxury items, most decent brands just dont bother with Thailand and thats why there is so much fake and copies and junk here.

Ofcourse the finance minister wouldn't care about that, they just want to make as much from importers as possible and who cares about the country!

Well, the whole point of the article is that the Finance Ministry seem to acknowledge that this is an issue - or did you not read that far?

[dunque]

Straw. Camel. Back. Hasn't happened yet. But it's getting there. All these pinpricks and eventually you start to lose serious blood. Malaysia looking better by the day.

Door. Arse. Way out. Don't let it happen.

[NoBrainer]

DrDoom6996

Sounds a bit far fetched. First of all I doubt that many of the ministers wives even talk to each other, let alone socialize. It's not in their nature to be nice to anyone else, they just tolerate them when required. I would summate that King Power, one of the wealthiest family businesses in Thailand is feeling the pinch at the retail level, due to the low quality of tourists arriving, as in the Chinese, Russians and Middle Easterners that make up the bulk of the tourist arrivals do not buy luxury goods. Rich Thais, who can usually get duty free products in the country anyway, are still finding the prices too high, so there is some heavy lobbying going on to make some changes before some peoples livelihoods are jeopardized.

[trainman34014]

The import duties on wine are 393.5%, and then 7.5% VAT on top of that. A $1 bottle ends up costs $13 here. Cheese, I do not know the import tariff. I only know that we are not able to purchase any cheese other than a big block of 2.27 KGs at the Markro for around 790/Baht. Every where else the cheese is so costly we do not look at it at all.

BIG C has negotiated favorable taxes. The cheese is 50% cheaper than at MAKRO

Went to buy my Mainland Cheddar at BiG C yesterday and it was the same price it's been for months; so where are the huge savings ?

[Pib]

I'm sure any import tariff reductions will be highly selective (very specific items which sell little in Thailand) to minimize any significant tax loss but at the same time the govt putting out news releases that will make it sound like many imports are now significantly cheaper. Summary: a cheap publicity stunt with little real substance. I would like to be wrong, hope I am wrong, but I probably won't be wrong...but I'll keep my fingers crossed.

[nong38]

I intend to take these points up with my local purveyor of alcholic beverages

[HerbalEd]

The import duties on wine are 393.5%, and then 7.5% VAT on top of that. A $1 bottle ends up costs $13 here. Cheese, I do not know the import tariff. I only know that we are not able to purchase any cheese other than a big block of 2.27 KGs at the Markro for around 790/Baht. Every where else the cheese is so costly we do not look at it at all.

There is no way the duty on wine is 393.5%. First of all, what a weird percentage number. But, in reality, I buy several brands of wine both here in Thailand and in USA ... and I pay here in BKK about double the price in USA.

Edited September 8, 2013 by HerbalEd

[HerbalEd]

I'm sure any import tariff reductions will be highly selective (very specific items which sell little in Thailand) to minimize any significant tax loss but at the same time the govt putting out news releases that will make it sound like many imports are now significantly cheaper. Summary: a cheap publicity stunt with little real substance. I would like to be wrong, hope I am wrong, but I probably won't be wrong...but I'll keep my fingers crossed.

Why would they want to "make it sound like many imports are now significantly cheaper"? The vast majority of people will never know about any duty changes, and most of the ones that do won't care. Sounds like a lot of trouble for very little benefit ... if any.

[mikemac]

A $1 bottle ends up costs $13 here.

Where you come from you can buy $1 bottles of wine ? Where do you drink it, under a bridge ?

[Emdog]

Sounds to me like the minister may have taken on another mia noi and is feeling the pinch. Jacked up prices: try guitars and guitar strings on for size. At least 50% more than in USA, even if both imports from Asia.

Edited September 8, 2013 by Emdog

[TackyToo]

That's really good news. So the PM does not have to leave the country every week and can buy all her Hermes bags and Burberry boots at home!

[enrico2]

The import duties on wine are 393.5%, and then 7.5% VAT on top of that. A $1 bottle ends up costs $13 here. Cheese, I do not know the import tariff. I only know that we are not able to purchase any cheese other than a big block of 2.27 KGs at the Markro for around 790/Baht. Every where else the cheese is so costly we do not look at it at all.

BIG C has negotiated favorable taxes. The cheese is 50% cheaper than at MAKRO

are you sure about this?

[Phatcharanan]

Since we have so many Sherlock wannabe's here, I have a theory for you to ponder.

The FM's wife gets together with other MP's wives and women MP's and tell the FM that their toiletries are to expensive and they want to go to Singapore. The FM and his MP friends decide to get together at a resort and have a thinking session (I know I'm presuming they can think). They can bill the resort bill to the government. While trying to figure it all out, one of them says "what would Taksin do?". One of the others says, "get rid of the damned taxes". The price comes down and the wives stay home. Brilliant, thinking session over, drinking session to begin. And don't forget to bill the government.

What do you think of my therory?

Didn't read it. I got bored after the first 3 acronyms.

[jackr]

most decent brands just dont bother with Thailand and thats why there is so much fake and copies and junk here.

Other way round, innit? Knockoffs were available before the brands even designed them! lol

Bottom line, if you're buying plastic tat from China, bland local beers, new Toyotas you're getting an okay deal; everything else (Beamers, cheese, wine, real beer, chocolate, consistent internet inline with the year 2013, etc), one is getting the shaft.

[Bpuumike]

Would save a certain lady having to visit Europe and give her more time for parliamentary duties.

[webfact]

TOURISM
Duty cuts to make Thailand a shopping paradise
Suphannee Pootpisut
The Nation

Move in two months could enable Thailand to compete with Hong Kong and Singapore

BANGKOK: -- Thailand is on its way to becoming a shopping mecca like Hong Kong and Singapore, as the Cabinet is expected to cut import duties on designer goods in a couple months.

"The government has a policy for Thailand to be a shopping paradise so it will reduce the tax on luxury imports to a competitive level with other countries like Singapore and Hong Kong, which have zero tariff on luxury goods like perfumes and cosmetics," Areepong Bhoocha-oom, permanent secretary at the Finance Ministry, said yesterday.

Lower customs taxes on luxury goods, which local shopping-mall operators have been waiting for years, could draw more foreign visitors and spur domestic spending.

The ministry's move comes as the economy braces for low exports and declining domestic spending. Also likely to hurt this year's growth are possible military strikes on Syria, which could push up oil prices and further dampen domestic spending. With delayed government projects, the tourism industry, expecting 26.2 million foreign arrivals this year, is now the only promising economic engine.

"But Thailand still subjects such goods to 30-per-cent duties. If tourists come to Thailand and can purchase all they want here, it would boost spending per tourist," he said.

From October-March, luxury merchandise imports surged 24 per cent on year to US$1.68 billion or Bt51 billion. The top three product categories were fruits (Bt10 billion), perfumes and cosmetics, and watches and accessories.

The proposed reduction in import duties, initially on some items like cosmetics, perfumes and watches, would be submitted for Cabinet approval in one to two months so that it would be effective this year, he said.

More spending would push up economic growth in the second half. It would also help promote the country's tourism, which provides employment to a few million workers. Eventually, Thailand would be a more competitive destination than other shopping oases like Singapore and Hong Kong, he said.

This measure would be implemented carefully to minimise the impact on domestic businesses.

The measure would not promote spending by Thais on luxury items, as Thais with purchasing power nowadays also shop for the items abroad.

Besides the tourism-related measure, Thailand would also promote border trade to lift economic growth. While exports to major economies drop, border trade is up 15 per cent so far this year. The Finance Ministry is eyeing more funding for border activities and greater convenience in cross-border currency transactions.

Upbeat on economy

The economy in the second half would not be in as sorry a state as some fear. There would be public spending of about Bt100 billion in the remaining months on top of special projects under two infrastructure schemes, he said.

Full-year growth this year would reach the targeted 4 per cent, he said.

The Fiscal Policy Office would assess the economy again at the end of this month. Besides soft export demand, the oil price is now a major risk to growth. Assuming Dubai crude would average $106 this year, the office in June forecast Thailand's growth at 4-5 per cent for 2013.

As global leaders weigh the option to launch military strikes against Syria, economists here are fretting about an eventual war - as oil prices could spike and deal a heavy blow to a net-energy-importing country like Thailand.

From above US$110 per barrel in February, the average Dubai crude oil price softened to $100-$101 in the second quarter. It has recently accelerated on growing worries about Syria. The spot price last week was $110.74.

"It's worrisome, as a spike would raise the natural gas price and electricity tariff. The government just adjusted the cooking gas price and higher energy prices are coming when Thailand's economy is witnessing decelerating growth," said Praipol Khumsap, an economics lecturer at Thammasat University. Crude could hit $150 in case of supply disruption, he said.

The Fiscal Policy Office estimates that for every $1 increase in the Dubai price, inflation could rise by 0.14 percentage point.

Still, Areepong and Paiboon Kittisrikangwan, an assistant governor of the Bank of Thailand, agreed that even with a strike, the impact should be short-lived. Paiboon said that in the long term, global demand and supply would determine oil prices.

About 90 per cent of energy consumed in Thailand is imported.


-- The Nation 2013-09-09

[boomerangutang]

When I see a sign saying 'duty free' I think 'expensive vanity stuff.' It's either liquor, ciggs, or marginally practical gizmos like fancy jewel-encrusted wristwatches. If the sign said, 'Not Duty Free', I'd be more inclined to shop there, - thinking 'maybe there's something useful or practical here, that's not wildly expensive.' I'm a 2nd hand sort of guy. Every day I lament there are no thrift stores in Thailand, or garage sales, bulletin boards, real classified sections in newspapers, and such.

The more Thailand tries to build a sophisticated image of itself, like with 'world class duty-free shopping arcades' ....the more it emphasizes its plasticity. It's not enough that nearly every Thai puts whitener on their skin, they also want to put whitener on their international image.

[chooka]

Is being a shopping Mecca the same as being the world retail HUB?

Can't really see people flocking to Thailand just for the Shopping, it's hardly Rome, Paris or London and you can actually buy a genuine product (not a pirated copy) for a fraction of the price at home.

Thai's really do think the rest of the world are idiots and an easy scam ready to be plucked.

[boomerangutang]

This is where Thailand is headed:

Already nearly all big businesses in Thailand are owned by Chinese or Chinese-Thais. Much the same with properties. I won't be around in 50 years, but I wouldn't be surprised if our grandkids are living in a country called 'Thailand Autonomous Region' which gets its directives from Beijing.

[chooka]

When I see a sign saying 'duty free' I think 'expensive vanity stuff.' It's either liquor, ciggs, or marginally practical gizmos like fancy jewel-encrusted wristwatches. If the sign said, 'Not Duty Free', I'd be more inclined to shop there, - thinking 'maybe there's something useful or practical here, that's not wildly expensive.' I'm a 2nd hand sort of guy. Every day I lament there are no thrift stores in Thailand, or garage sales, bulletin boards, real classified sections in newspapers, and such.

The more Thailand tries to build a sophisticated image of itself, like with 'world class duty-free shopping arcades' ....the more it emphasizes its plasticity. It's not enough that nearly every Thai puts whitener on their skin, they also want to put whitener on their international image.

Your right duty free is a total scam world wide. You can actually buy your booze cheaper at liquor at retail outlets cheaper than duty free shops.

[OMGImInPattaya]

"The other day I was in a shop and had a demo of a small Bose blue tooth speaker. The sound was fantastic. I asked the price and was told 9,990 Baht. I open my mobile phone to check prices and found that the same speaker is $199 everywhere, so the Bangkok price is 50% higher than anywhere outside of Thailand. It is crazy. How about food supplements? I'd love to purchase them in Thailand, but they are beyond my means. I order in the USA and wait for someone who is flying this way to carry them."

Me too. I don't even bother to check prices in Thailand now for camera gear. I have spent many thousands in Thailand over the years but stopped a few years back when they jacked up the tax. It has been cheaper for me to fly to Singapore from Phnom Penh, although now we seem able to get most equipment here, normally same price as Singapore and usually 25-35% cheaper than Thailand. I also regularly get stuff brought out by people from the US, UK or Australia as it's cheaper there too. I also take large amounts of foreign foods from Phnom Penh when I travel to see my wife in Khon Kaen as many items either cannot be found outside Bangkok or are often double the price. One I noticed was imported cream, $4.50 in Phnom Penh, Baht 345 in Khon Kaen for the exact same product, thankfully there is Thai cream at around $5 a pop.

I used to do all that too the first 4-5 years living in Thailand but then it gets tiring and a little ridiculous. Especially now, with the baht strong and the prices and selection of most goods being light years better than 15 years ago when I first arrived, I don't bother comparison shopping anymore. I just buy what I want when I want...lucky I'm financially able to do this. The only things I bring back from my annual Stateside visit are foodstuffs and electronics that are not available in Thailand.

[realfunster]

I welcome the move, the whole duty regimen in Thailand needs revision.

In this particular case, Thailand has often been called a shopping paradise but as others point out the reality is somewhat different. I have recently taken to buying clothes in Singapore on business trips - much cheaper there. They should be encouraging more spend in country. Cheaper imported goods would also have a positive effect on pirating and also remove the Customs department from the equation. Both of these are seen by the international business community as significant negatives in doing business in Thailand.

I expect this will be the first of many such changes as significant pressure is being applied by the EU, amongst others, who feel it is time to liberalise the Thai market. Thailand currently receives favourable export terms to the EU but these will expire end of 2014. This will likely be replaced by a FTA which should enable more access for EU goods at sensible prices.

[clockman]

The customs are just another example of corruption in Thailand!

[N47HAN]

The import duties on wine are 393.5%, and then 7.5% VAT on top of that. A $1 bottle ends up costs $13 here. Cheese, I do not know the import tariff. I only know that we are not able to purchase any cheese other than a big block of 2.27 KGs at the Markro for around 790/Baht. Every where else the cheese is so costly we do not look at it at all.

BIG C has negotiated favorable taxes. The cheese is 50% cheaper than at MAKRO

Why on earth would you believe that one supermarket can / has negotiated with the government to receive favourable taxes on cheese ? Jees what dumb ass statement

Im off to big C to see if your right... Can make a furtune then

[waza]

The eoples PTP government seems to be doing whatever they can for the neuvo rich and nothing for their supporters