No tax reduction for brand-name goods: Thai officials

[webfact]

No Tax Reduction for Brand-Name Goods: Officials
By Khaood Online



BANGKOK: -- Deputy Minister of Finance and the director of Customs Department, Ms. Benja Louicharoen, finally confirmed that the tax for luxury goods will not be cut.

According to the Deputy Finance Minister, the latest report on luxurious goods import this year worth a total of THB 100 billion. The product with highest total is perfume with THB 15 billion, increased by THB 4 billion.

Meanwhile, Bags comes in second with THB 11 billion, THB 3 billion higher. Next are watches with THB 2 billion increase from THB 8 billion.

Clothing sector also earned THB 6 billion in total with THB 1 billion higher. Eyeglasses doubled from THB 1 billion to THB 2 billion this year, and the rest is miscellaneous merchandises.

The deputy finance minister then admitted that there will be no tax cut on these luxurious import goods as domestic entrepreneurs would be harmfully affected. Moreover, there is also no guarantee that the prices will be reduced.

It is now up to the Fiscal Policy Office to come up with another approach to support Thailand as a shopping paradise, regarding the purpose of the government policy, said Ms. Benja.

Source: http://www.khaosod.co.th/en/view_newsonline.php?newsid=TVRNNE16QTBOemt4Tmc9PQ==

-- KHAOSOD English 2013-10-30

[CelticBhoy]

"According to the Deputy Finance Minister, the latest report on luxurious goods import this year worth a total of THB 100 billion. The product with highest total is perfume with THB 15 billion, increased by THB 4 billion."

Ms. Benja failed to mention that Yingluck's overseas shopping sprees accounted for two-thirds of these amounts.

[Thai at Heart]

I love how they look at this as "earned" money.

It's a hard day, when taxing luxuries is seen as earning a living.

Domestic entrepreneurs. In the perfume and luxury leather goods sector?

Yves somchai Laurent, and Louis somsak vuitton.? Those well known innovators and world shakers?

Edited October 29, 2013 by Thai at Heart

[chooka]

Have to protect the local pirating industry.

[jackr]

The deputy finance minister then admitted that there will be no tax cut on these luxurious import goods as domestic entrepreneurs would be harmfully affected

Yeah, yeah, save it; nothing to do with the coin you're bringing in, right! Btw, deputy, you do realise your country is quickly becoming as expensive, if not more so, than the 1st world countries where this stuff originates? Put it right, you are not Singapore and never will be.

[bigbamboo]

So that's the end of Thailand as the ASEAN high end shopping hub then?

Maybe just as well. People who come to Thailand are here for the fake stuff anyway.

[jbrain]

Moreover, there is also no guarantee that the prices will be reduced.

At least the government learned something everyone else knew already.

A tax reduction would only be translated as an increase in profit for the importers.

[Tatsujin]

The deputy finance minister then admitted that there will be no tax cut on these luxurious import goods as domestic entrepreneurs would be harmfully affected

Yeah, yeah, save it; nothing to do with the coin you're bringing in, right! Btw, deputy, you do realise your country is quickly becoming as expensive, if not more so, than the 1st world countries where this stuff originates? Put it right, you are not Singapore and never will be.

You got that right. Muppets in power.

[reggaebkk]

Well yes of course, why would the government reduce taxes on these products when its members make so much money manufacturing the copy versions.

[kingalfred]

Name Branded goods are more expensive in LoS than tthe USA and Europe,which says something about price hiking when sales tax is only 7 %.just remember the government scams are more widespread than the local ones in Bangkok.One reason Gov never cracks down them .poacher and gamekeeper

Sent from my iPhone using Thaivisa Connect Thailand mobile app

Edited October 30, 2013 by kingalfred

[indyuk]

But surely foreign Tourists will still be able to reclaim the luxury good tax at the airport.

[razer]

Thailand wants free access to all markets yet throws up protectionst barriers (inconsistant with WTO) to imports. The cigarette manufacters told the Thai government to F-off which is why you have a very limited choice of non Thai brands. Want to see nerw cars in the market? Go to Laos or Cambodia or Singapore for a quick look. No obscene import tax there. It is the way it is. Karma will come to Thailand. When I read non Thai publications especially in business and economics, I think the karma payback is starting.

[Thai at Heart]

Thailand wants free access to all markets yet throws up protectionst barriers (inconsistant with WTO) to imports. The cigarette manufacters told the Thai government to F-off which is why you have a very limited choice of non Thai brands. Want to see nerw cars in the market? Go to Laos or Cambodia or Singapore for a quick look. No obscene import tax there. It is the way it is. Karma will come to Thailand. When I read non Thai publications especially in business and economics, I think the karma payback is starting.

They are scrabbling around for more ways to get growth and consumption moving, but they went liberalise anything.

They come up with the right idea and then some group of pooyais moan about someone messing with their turf.

[FarangTalk]

In a country where status is everything, this is just how they like it.

The more expensive something is, ergo the better it is.

I'm always puzzled when I see foreigners buying anything other than trinkets or counterfeits here. Wherever you came from or are going to it is almost guaranteed to be cheaper.

Even in the airport, wine and spirits, electronics and anything that is not Thai-made is far more expensive than the majority of other places.

I'm lucky to be able to travel a lot and purchase all (almost without exception) luxury goods overseas.

[PhilipCook]

Looking forward 10 years, I suspect Thailand will be playing catchup with a few of its neighbors in terms of competitiveness, productivity, quality.

[gemini81]

Fine then, buy grade A copies. They come in first place once again in another category of tax policy and (poor) planning. I know several of the Director Generals, Deputies. They play along with PTP out of fear of them reshuffling, as they often do. It comes back to PTP and poor planning. Rice farmers tax exempt, yet those over 150,000 baht per year start at 10% income tax, and on up in increments of 10%....until that is solved, and the majority of people are actually not tax exempt, then they'll have to keep finding other ridiculous means to compensate for the personal income tax problem (I know PTP count on those rural farmer votes).

Edited October 30, 2013 by gemini81

[Bluespunk]

"The deputy finance minister then admitted that there will be no tax cut on these luxurious import goods as domestic entrepreneurs would be harmfully affected. Moreover, there is also no guarantee that the prices will be reduced."

So in other words is saying that domestic producers are inefficient and can't compete. Bodes well for ASEAN free market. As for the second BS excuse, seriously, thats your logical reasoning at work? Truly pathetic, stupid and nonsensical thinking. Did this guy have anything to do with the rice scheme?

[Thai at Heart]

Fine then, buy grade A copies. They come in first place once again in another category of tax policy and (poor) planning. I know several of the Director Generals, Deputies. They play along with PTP out of fear of them reshuffling, as they often do. It comes back to PTP and poor planning. Rice farmers tax exempt, yet those over 150,000 baht per year start at 10% income tax, and on up in increments of 10%....until that is solved, and the majority of people are actually not tax exempt, then they'll have to keep finding other ridiculous means to compensate for the personal income tax problem (I know PTP count on those rural farmer votes).

Vat is the future. It's the only way and if it becomes a much bigger number, it automatically will get included because companies won't be able to not invoice it.

In China it is 20% in an attempt to cut down on cash business.

[ginjag]

Swampy BKK, This month early and waiting for the EVA flight to London, in the duty free area (and this was peak time) I have never seen King power so quiet, duty free areas were teeming with passengers but NOT shopping. most were in Boots getting slightly cheaper sarnies, or sat waiting for gate to be clarified. King power get what they deserve--they are a rip off--and luxury items were not selling. You cannot expect persons to buy Aramis 100 ml---when for the same price in UK you get 200ml. this just simply is telling the no tax reduction wally-your getting it wrong, but he is not to know because I would think he never shops.

[kurnell]

So Thailand wants the high end tourists, but they price themselves out of the market for high priced, high end goods. So what are the rich and ludicrous supposed to buy, thousands of dollars worth of khao pat? That's a lotta plates.

[h90]

100 billion????

Sounds way to low for me.....Guess 90 % go around the tax already.