Tax On Secondhand Cars Will Raise 30 Billions

[selftaopath]

Actually I hate that they raise taxes but its unfair that only salary people pay taxes. The more people they tax the fairer it is and the more people will protest if the taxes are squandered with corrupt practices.

So please don't stop here.

Then again, by taxing more people prices will raise of course (im pretty sure people want to keep the same income)

The VAT here is an across the board tax so all Thai's and everyone else living here pay this tax. The poor farmer pays the same VAT on goods as the rich Hiso, office worker, hotel cleaner etc. So in reality, as a percentage of his/her disposable income, is probably paying more tax. Others posters on TVf accuse the Isaan farmers and others of not paying their fair share but in reality its the middle men and above who are milking the system same as the rest of the planet.

I live in the midst of farmers. Most - practically everything - is purchased with cash and no receipt and no tax. Work is paid by cash.. no records/no tax etc. etc. Practically no one has a legitimate job or license to operate a motorized vehicle.

[AyG]

What is the "British Used Car taxation system"? Never heard of such a thing.

Is this just another case of labelling something unpalatable as foreign, whilst nice things are always Thai?

[trainman34014]

Hopefully this will wipe out a lot of these crooks who call themselves used car dealers and should also drive down the cost of second hand cars by about 70%. Anyone who buys a used car here at current prices must be completely nuts.

[brfsa2]

Now, how much more money are the Car manufactures going to get ? this is obviously some scheme to make people buy new car. pure corruption.

[Halion]

What this pathetic imbecile is really saying is that due to the incompetence and tardiness of his office who have failed to due their job they now plan direct taxation on the buyer. Money grabbing is bad enough but to seek out the simplest solution is down right ignorant. Sack you people and re-engineer your business in order to operate in an inefficient manner. because you can not e bothered to track down stock locations for second hand dealers you are going to make Joe public your tax collector. It is no wonder that people want rid of this pitiful excuse for a government.

[tomyummer]

So will there be an accompanying 'lemon law' backed by the government as well? Then maybe it will be worth it.

[Moruya]

The cars for rice scheme is born

[Artisi]

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.

Thai "Politics confuse me"

[robblok]

Actually I hate that they raise taxes but its unfair that only salary people pay taxes. The more people they tax the fairer it is and the more people will protest if the taxes are squandered with corrupt practices.

So please don't stop here.

Then again, by taxing more people prices will raise of course (im pretty sure people want to keep the same income)

The VAT here is an across the board tax so all Thai's and everyone else living here pay this tax. The poor farmer pays the same VAT on goods as the rich Hiso, office worker, hotel cleaner etc. So in reality, as a percentage of his/her disposable income, is probably paying more tax. Others posters on TVf accuse the Isaan farmers and others of not paying their fair share but in reality its the middle men and above who are milking the system same as the rest of the planet.

Funny.. of course Isarn farmers often don't pay vat as you only pay vat if you go to the Big C and such many other shops are exempt. The local som tam wont pay vat ect.

It would be a good Idea that those are net receivers of the government not to let them vote. That would change things as its totally unfair that those who are net receivers decide about the taxes of those who pay them. (middle class)

Edited January 4, 2014 by robblok

[Thai at Heart]

Actually I hate that they raise taxes but its unfair that only salary people pay taxes. The more people they tax the fairer it is and the more people will protest if the taxes are squandered with corrupt practices.

So please don't stop here.

Then again, by taxing more people prices will raise of course (im pretty sure people want to keep the same income)

The VAT here is an across the board tax so all Thai's and everyone else living here pay this tax. The poor farmer pays the same VAT on goods as the rich Hiso, office worker, hotel cleaner etc. So in reality, as a percentage of his/her disposable income, is probably paying more tax. Others posters on TVf accuse the Isaan farmers and others of not paying their fair share but in reality its the middle men and above who are milking the system same as the rest of the planet.

Still doesn't explain to me why second hand cars as a business are apparently conducting their business in a tax free environment.

I tell you the way to solve this and the chinese have shown the way.

Vat at 20% and run a scratch card lottery with the receipts. No tax deductions without receipts and you can win up everything from 50 baht to millions with the lottery in china.

Every one wants a receipt because it's extremely valuable to the company or person.

There is an entire part of the thai economy that has grown beyond the mom and pop noodle stand which should be brought into the real economy. The poor can exist in thailand without paying vat but car sales should be taxed.

It is a business after all right?

[belg]

a ten year old car here

worth near to nothing in western countries

still goes here for newprice - 100 or 200.000 baht

crazy madness

[Bluetongue]

"There is an entire part of the thai economy that has grown beyond the mom and pop noodle stand which should be brought into the real economy. The poor can exist in thailand without paying vat but car sales should be taxed."

I agree Thai at Heart. I helped a Thai friend get a business visa to New Zealand. In the course of doing so I discovered that his three farms and supermarket here in the country turned over about 50mill a year. There were no records for outgoings so

profit was unknown, only because the tills collected the takings info because he was worried about theft did he know his

incoming, plus he remembered how much he sold his crops for.

I said to him surely you must pay tax and he said he did and produced a receipt for about 50 baht which turned out to be his

annual fee for a license to sell booze and smokes.

[MJP]

I was gonna add, after I got that VW Passat TDI 130 (38k miles, showroom mint, fVWsh) for £3000 in the UK I thought I might as well look for one similar in Thailand.

£9000. And not nice. And high miles. And awful.

[Thai at Heart]

"There is an entire part of the thai economy that has grown beyond the mom and pop noodle stand which should be brought into the real economy. The poor can exist in thailand without paying vat but car sales should be taxed."

I agree Thai at Heart. I helped a Thai friend get a business visa to New Zealand. In the course of doing so I discovered that his three farms and supermarket here in the country turned over about 50mill a year. There were no records for outgoings so

profit was unknown, only because the tills collected the takings info because he was worried about theft did he know his

incoming, plus he remembered how much he sold his crops for.

I said to him surely you must pay tax and he said he did and produced a receipt for about 50 baht which turned out to be his

annual fee for a license to sell booze and smokes.

This is exactly what is going on here. I can appreciate that people might complain that the government is corrupt and doesn't deserve their cash, but it is taking the mickey.

I have a colleague that I used to work with who's family is absolutely loaded. They have 700 rooms for rent for students in bangkok. The entire family is employed by the company to spread earnings into the family.

They pay precisely zero on revenue of 700 rooms x 3 to 5k per month. As I said I am not anti entrepreneur but it had gone too far now and it has become a case of beggar thy neighbour.Its too much.

[MJP]

Yikes!!!

http://www.bbc.co.uk/news/world-latin-america-25595674

[AyG]

A markup of 400% in Cuba seems bad, but imported cars in Thailand can be marked up as much as 350%, so in comparison it doesn't seem that bad.

[watso63]

Just going to make existing owners hang on to their cars for longer, which will push up the price of used cars more, because there will be less supply, but worse will be the effect on the Thai car manufacturing industry because demand will decrease even more than it has already because of political inteference.

My theory and it's just a guess is the banks/lenders own most of the cars in Thailand, so when the loanee defaults on payment, they go back onto the used car market.....and banks don't like to lose money.....or is there anyone out there that actually does know?

As for me I enjoy driving around in my 1 year old pick-up (bought new) especially when 79,000Thb got paid back in December. Brand new 4 door Mazda BT-50 Hi-Racer for 670,000Thb....very nice and should last many many years...touch wood.

Edited January 4, 2014 by watso63