Tax On Secondhand Cars Will Raise 30 Billions

[Lite Beer]

Tax On Secondhand Cars Will Raise 30 Billions

BANGKOK: -- The Revenue Department (RD) is planning to register secondhand cars business in order to gain more tax revenue.

The plan is also designed to introduce the business to regional markets, official said.

“Since the dissolution of the Parliament, we decided to propose the plan to the new cabinet” said Mr. Sutthichai Sangkhamanee, RD Director General.

“Numbers of used car increased to 3 million in these 5-6 years. I believe that the tax revenue from the business should provide more than 30 billion baht each year”, he said.

He added that the department will imitate the British Used Car taxation system, and will cooperate with the Department of Land Transport in evaluating the used car price and tax calculations.

Mr. Sutthichai said the new system would also help the business to grow abroad, as well as attracting foreign investors.

“Generally, used car trading was not officially registered in the system. Hence the Department is unable to collect Value Added Tax and Personal Income Tax from car owners. We need to systemise the process,” Mr. Sutthichai told our correspondent.

Up to now, the RD tax collection system for used car dealers relies on the stock review, which is sometimes troublesome as many dealers keep their stockpiles away from their operating sites, according to Mr. Sutthichai.

Source: http://www.khaosod.co.th/en/view_newsonline.php?newsid=TVRNNE9EY3pNVFV5TUE9PQ==

-- Khaosod English 2014-01-03

[Felt 35]

One way to get something in again after the fabulous tax rebate scheme have put a lot of new cars on the second-hand market!

[rubl]

"Hence the Department is unable to collect ... Personal Income Tax from car owners. We need to systemise the process ..."

Finally, progress to be made. Soon PIX forms automatically mailed upon buying a second-hand car.

[gmac]

Add tax to 2nd hand car prices and with the way prices stay high on used vehicles it might end up being cheaper to buy a new one!

[chooka]

How expensive are 2nd hand cars already in Thailand? 10 yr old cars(Toyota soluna) still selling for around 180,000baht in Australia the same car would be lucky to fetch 15,000baht.

Edited January 3, 2014 by chooka

[MJP]

How expensive are 2nd hand cars already in Thailand? 10 yr old cars(Toyota soluna) still selling for around 180,000baht in Australia the same car would be lucky to fetch 15,000baht.

You mean scrap value. Because that's all they're good for. The heap.

[winstonc]

another idea that wont see the light of day,...........

[uptheos]

How expensive are 2nd hand cars already in Thailand? 10 yr old cars(Toyota soluna) still selling for around 180,000baht in Australia the same car would be lucky to fetch 15,000baht.

Well, they are polished daily.

[ginjag]

another idea that wont see the light of day,...........

Yes how many of these are the ones reclaimed for broken contract payment agreements .???( government scheme). What GMAC said was true, I have seen here a Nissan March 1 year old same price than a new one, Why is this cause certain models there is a 3 month ORDER wait list. Taxing the second hand car will be as GMAC stated dearer than a new one.

Edited January 3, 2014 by ginjag

[wprime]

I thought the Shinawartas already sold their shares in local car manufacturers after they boomed up from the First Car Buyer scheme, why are they still encouraging people to buy new cars? Politics confuse me.

[TVGerry]

More money raised to pay off the rice farmers!

[Ricardo]

Why on Earth aren't these businesses already in the tax-collecting system ?

[lawrence1366]

Add tax to 2nd hand car prices and with the way prices stay high on used vehicles it might end up being cheaper to buy a new one!

Talking is cheap. Who is going to enforce it? They're losing collections elsewhere, so some bright sparks need to come up with ideas on how to squeeze the last drop of money from the people. Yeah so much for democratic government...go elect them next month.

By the way, what happens to those luxurious cars brought in illegally into the country? How about collecting taxes from them? New Year New Ideas.....

[Thai at Heart]

This is the biggest money laundering business in thailand.

We are unable to get vat and income tax?, are these people hiding in full view with so fronts and offices and millions of cars on prime real estate in every city in the country.

[Thai at Heart]

Add tax to 2nd hand car prices and with the way prices stay high on used vehicles it might end up being cheaper to buy a new one!

Talking is cheap. Who is going to enforce it? They're losing collections elsewhere, so some bright sparks need to come up with ideas on how to squeeze the last drop of money from the people. Yeah so much for democratic government...go elect them next month.

By the way, what happens to those luxurious cars brought in illegally into the country? How about collecting taxes from them? New Year New Ideas.....

What do you mean squeeze every last drop? The figures look big but the revenue department has barely ever scratched the surface.

[chainarong]

One would think that a second hand car yard would be taxed the same as everything else, don't tell me this side of the car market never paid tax, probably the best way to buy a car is import parts, this seems to be a healthy trade, as no one seems to get charged from the DSI .

[ChrisY1]

Used car dealers pay tax.....

[jmccarty]

Does this mean 2nd hand cars can again be imported?

Would have saved me a lot of money if this is the case having sold 2 cars I had in Singapore and could not until now import at any price.

[rreddin]

More money raised to pay off the rice farmers!

and the rubber growers and subsidising diesel. Oh ! Sorry! The last two were Dems policies.

[ramrod711]

Increasing taxes on everything, they have no choice, PTPs lack of any trace of a fiscal policy has driven up prices on booze, cigarettes, propane gas, food, restaurant meals and nearly everything else. Those of you who think the dealers are going to pay the tax are fooling your selves, the consumer always pays.

[ramrod711]

More money raised to pay off the rice farmers!

and the rubber growers and subsidising diesel. Oh ! Sorry! The last two were Dems policies.

Are you admitting that the rice scheme was a bad idea? My goodness, will wonders never cease?

[ChrisY1]

Why on Earth aren't these businesses already in the tax-collecting system ?

It's a protected scam....too many big names involved in this business.....

[Thai at Heart]

Increasing taxes on everything, they have no choice, PTPs lack of any trace of a fiscal policy has driven up prices on booze, cigarettes, propane gas, food, restaurant meals and nearly everything else. Those of you who think the dealers are going to pay the tax are fooling your selves, the consumer always pays.

Hardly. Why on earth should 2hnd car dealers be ignored more than anyone else. Reality is, the only people guaranteed to pay taxes in thailand are honest salaried. There are only 3mn income tax payers in this country and they pay a higher rate than most in the region.

Cutting out all of these loopholes might allow for a more equitable split in other taxes. These evaders are a scourge on the country. If everyone paid their taxes the thai government wouldn't know what to do with their money.

[kiniyow]

When the Poor Thais attempting to get off a Motorbike can finally buy a second Hand car here comes the Government wanting to raise Tax..UnReal..

[Carrerakiss]

Increasing taxes on everything, they have no choice, PTPs lack of any trace of a fiscal policy has driven up prices on booze, cigarettes, propane gas, food, restaurant meals and nearly everything else. Those of you who think the dealers are going to pay the tax are fooling your selves, the consumer always pays.

This isn't increasing the taxes, it's simply applying tax that is currently evaded by many in the used car industry.

Frankly, what do people expect the tax dept to do? Same as in every other country in the world, they always look to close loopholes. Just that Thai tax authorities aren't very good at it. Try taking on the IRS or UK Revenue, THEY usually mean business when they make announcements. Nothing will come of this one from the Thai tax people.

[khunken]

Increasing taxes on everything, they have no choice, PTPs lack of any trace of a fiscal policy has driven up prices on booze, cigarettes, propane gas, food, restaurant meals and nearly everything else. Those of you who think the dealers are going to pay the tax are fooling your selves, the consumer always pays.

Hardly. Why on earth should 2hnd car dealers be ignored more than anyone else. Reality is, the only people guaranteed to pay taxes in thailand are honest salaried. There are only 3mn income tax payers in this country and they pay a higher rate than most in the region.

Cutting out all of these loopholes might allow for a more equitable split in other taxes. These evaders are a scourge on the country. If everyone paid their taxes the thai government wouldn't know what to do with their money.

Exactly.

And if they succeed they should go after used motorcycle dealers and following that go after any business that is evading tax. It is called fairness.

However TAH I'm sure that the government would find a way to use the money.

[ginjag]

Increasing taxes on everything, they have no choice, PTPs lack of any trace of a fiscal policy has driven up prices on booze, cigarettes, propane gas, food, restaurant meals and nearly everything else. Those of you who think the dealers are going to pay the tax are fooling your selves, the consumer always pays.

Hardly. Why on earth should 2hnd car dealers be ignored more than anyone else. Reality is, the only people guaranteed to pay taxes in thailand are honest salaried. There are only 3mn income tax payers in this country and they pay a higher rate than most in the region.

Cutting out all of these loopholes might allow for a more equitable split in other taxes. These evaders are a scourge on the country. If everyone paid their taxes the thai government wouldn't know what to do with their money.

Exactly.

And if they succeed they should go after used motorcycle dealers and following that go after any business that is evading tax. It is called fairness.

However TAH I'm sure that the government would find a way to use the money.

If only we could find who owns these big second hand car dealerships, I know we have a fair Idea. Big connections, BIB. and so on and how many years have they not had to pay tax ??--it is these things examples that sickens normal folk.

[Costas2008]

Ricardo, on 03 Jan 2014 - 14:42, said:

Why on Earth aren't these businesses already in the tax-collecting system ?

They were confused with the Som Tam making business.

But now the government has a clear understanding of the difference.

[metisdead]

A post containing a link and content from Bangkok Post has been removed as well as the replies.

[jackr]

The thing is, Mr Sutthichai Sangkhamanee, RD Director General, second hand cars in Britain are appropriately priced such that tax levied is pretty much negligible. Second hand car prices in good ole Muang Thai?