FPO holds talks with importers over luxury tax cut

BANGKOK, 23 September 2013 (NNT) - The Ministry of Finance’s Fiscal Policy Office is set to hold talks with luxury goods importers this week to discuss the reduction of taxes in a bid to promote Thailand as the ‘shopping paradise.’

The Finance Ministry's plan to slash import tariffs on luxury products may be applied selectively, to avoid affecting domestic producers of similar items, particularly leather and accessories. The meeting is slated to define the precise rate of the cut and the types of high-end products to which the tax cuts apply.

Earlier reports suggested that the ministry was considering cutting import tariffs from 30 % to 5 % to attract visitors.

The Cabinet in August approved a package of measures to sustain economic growth, which included import duty exemptions.

From October to March, luxury-merchandise imports to Thailand surged 24 per cent on year to US$1.68 billion


-- NNT 2013-09-23

Yes, come to Thailand to buy items you can buy in your home country for less.

Forget the luxury goods.. lets slash the tax on performance cars, wine and cheese.. Handbags, watches and designer clothes I can do without..

Slash the taxes,but can they be assured that the retailers

will lower their prices, or just see it as a windfall?

regards Worgeordie

I wonder which sector of the population this will benefit.

I think they mean 'A shopping paradise' not 'THE shopping paradise'. Serious shoppers in the region will still continue to go to upmarket Singapore and Hong Kong whilst Thailand will remain competitive in the low end sector and of course for those shoppers that IS paradise!

Come on do this on more articles.. and just raise the tax on alcohol again to finance it.. its for the greater good.

Discussing how much they will still be expected to pay to customs under the table once the taxes have been cut????

Where do these characters come from, what school or university did they buy their degree from?

A shoppers paradise ? For who ? The tourist market, just buy your new Porsche here and ship it back to your home cheap at twice the price you know. Precious metals and gemstones all available at a special price to the foreign tourist, never mind the tax you've to pay upon returning to your own country.

Of course it's the local market, at last Thaksins promise that all Thai's will be rich within six months has come to be a truthful statement, well for the select few anyway.

Rubber growers and rice farmers are becoming the newly ample rich didn't you know. politicians in the P.T.P. are rich due to their puppet masters stipend we might yet even see a second pink Bentley in Thailand you know.

Or in reality the majority of Thai people will be buying a ''Rolls Canardly'' . Rolls down one hill but Canardly roll up the next one.

How much do you want to bet, that the new lower tax will be applied to the luxury cars that have avoided paying taxes. This is just a good way to help them get off the hook.

agree...raise alcohol and cigarette taxes substantially to pay for it.

I wonder which sector of the population this will benefit.

The same sector that benefited from the excise tax cut for first car buyers...the middle class. Nice one Yingluck...looking after your grass roots supporters once again...

Protectionism. Thais will "selectively" apply the tax so as to protect home industries, black markets, and the Thai business elite.

I wonder which sector of the population this will benefit.

The sector that participates in the activity being taxed of course. Strange how some can only see the "who benefits" side of the equation. The "greatest good" occurs when total revenue is maximized and economic activity not suppressed.